Milos Krstic

Publications (5) See all

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  Article: THE ROLE OF RULES IN THE EVOLUTION OF THE MARKET SYSTEM: HAYEK'S CONCEPT OF EVOLUTIONARY EPISTEMOLOGY**

  Miloš Krstić
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  ABSTRACT: Starting from the concept of the Darwinian paradigm that, by using Darwin's principles of variation, selection, and retention, all domains from biology to economic systems can be explained, the advocates of modern evolutionary epistemology have analysed the role of thoughtful institutional design in the process of cultural evolution. In light of the issue of how human intention and evolutionary forces interact in socio-economic processes, this paper examines the views of F. A. Hayek, the most famous follower of evolutionary epistemology, on the evolution of the market economy system. In this paper special attention will be devoted to Hayek's concept of rational liberalism and his evolutionary epistemology. KEY WORDS: market systems, knowledge, abstract rules, 'blind', evolutionary exploration, institutional design, planning.
  Ekonomski anali 12/2012; LVII(194):123-140.
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  Article: Economic themes: THE IMPACT OF FOREIGN EXCHANGE RATE ON THEECONOMIC GROWTH OF SERBIA

  Dragoslav Kitanovic Milos Krstic
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  ABSTRACT: Abstract: The relation between exchange rate and stability and dynamics of real economy has in the past period and especially today occupied the attention of economic theoreticians. This is because different levels of economy marketability, from developed ones to the economies in transition, demand a very subtle monetary policy, which ensures dynamic economic growth. In the first part of this paper, there is a short review of epistemological aspect of this problem so that in the second part, we can proceed to the analysis of positive and negative ranges of the actual policy of the rate of dinar to the economic growth in Serbia.
  Economic Themes. 01/2010;
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  Article: CERTAIN METHODOLOGICAL PROBLEMS OF CONTEMPORARY ECONOMIC SCIENCE

  Dragoslav Kitanovic Milos Krstic
  Facta universitatis - series Economics and Organiyation. 01/2009; 6(3-3):199-209.
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  Article: Book Review New Theory of International Trade and New Economic Geography

  Milos Krstic
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  ABSTRACT: Professor Natalia Volchkova (Наталья Волчкова) in her paper tittled The New Theory of International Trade and New Economic Geography, discussed about PaulKrigmas contribution (re-warded with Nobel Price in Economics 2008) to the analysis of the structure of trade and distri-bution of centres of the economic power. Volchk-ova (Волчкова), first, emphasizes Krugman's skill to present complex ideas in a simple and accessible way. Pointing to the important current phenome-na and rejecting less important characteristics in a particular context, Krugman gives us the ability to perceive the cause-effect relations with the naked eye. This skill is necessary, in particular, when the ideas should be presented and recognized as such, and when the right decisions should be made. According to Volchkova (Волчкова), Krugman's papers from 1979 and 1980 made an important step in creating the mechanism of international trade, which explains different contradictions. The basic contradiction in international trade suggests that about one quarter of the world trade refers to in-ter-industrial trade. Specifically, over time indus-trial countries have become similar in terms of: technology, availability of capital and skilled work force. As the largest trading partners apply similar technology and resources, there is often no clear comparative advantage at the country level, and therefore the most of the international trade re-fers to two-way exchanges within industries, rath-er than to intra-industrial specialization. Elaborating on the analysis of the impact of mutual relationships between economy of scale and comparative advantages in the form of in-ternational trade, Volchkova (Волчкова) then turns to Krugman's view that a combination of the mobility of factors and growing of the scale of the economy leads to a strong distil of the fac-tor of trade. In this way, it has been pointed to the mechanism potentially responsible for concen-tration of the economic activity in one region and cease of it in another region. Besides, in this sec-tion Volchkova (Волчкова) analyzesKrugmas mathematical approach that allows the model-ling of the flow of goods and accomplishing of the spatial distribution of production and consum-ers. This model is called "the centre-periphery". In this model, households are equal and require two commodities: agricultural c a and industrial c m , which are presented by Koba-Douglas's func-tion, as follows: U = c µ m c 1-µ a . (1)
  Geografica panonica. 03/2012; 16(1-1):35-37.
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  Article: TRANSACTION COSTS AND EFFICIENCY OF THE INSTITUTIONS

  Dragan Petrovic, Milos Krstic
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  ABSTRACT: Abstract: Economists of neoclassical school aiming to give the economics the status of the exact discipline, made the distinction between the study of facts and the study of values, emphasis that the primary domain of economics studying is the facts. From Marshall, over Pigou and Robinson, economic science has attain the status of the science of choice or science of determining the rational decision. In the orthodox model of rational decision making, role of transaction costs in the economic development of society is interpreted incorrectly. The purpose of this paper is to prove that the declining efficiency of the institute in the short-term increases the specific transaction costs, as their long-terming increases of efectiveness decrease specific and increase general transaction costs.
  Facta Universitatis - series Economics and Organization. 01/2011; 8(4-4):379-387.