New institutional economics and the study of the Cuban economy

A critical question in view of the changes in Eastern Europe and the Soviet Union is whether or not the ensuing changes in the Cuban economy will shift it onto a path that generates long-term economic growth. Understanding this process requires the use of advances in the analysis of transaction costs, property rights, and public choice; these three areas have been referred to as comprising the new institutional economics. After introducing and illustrating the main concepts, the author applies these ideas to the analysis of: development in a historical context; nonmarket settings; the distribution sector in market settings; and, finally, the institutional changes associated with transitions from a centrally planned economy to a market economy. A unifying theme is raised by the question -- what are the economic functions performed by a particular institution? (Author abstract)