This introduction to the Kornai 90 Symposium briefly overviews János Kornai's rich scholarship with the aim of highlighting those features of Kornai's work that are of particular interest to institutional economists. Above all, the introduction browses through some of his main works, such as Overcentralization, Anti-Equilibrium, and Economics of Shortage, with a special emphasis on the soft budget constraint, The Socialist System, and Kornai's latest writings on Hungary's U-turn. We invoke the political contexts of these works to suggest their impact on Kornai's diverse questions, changing methods, and the constraint they put on his conclusions as well as on the reception of the research results. In the end, we underline that Kornai was an independent scholar with an interest in a variety of methods and approaches, who nevertheless, or maybe consequently, had a remarkable impact on the thinking of social scientists and practitioners alike. The four papers presented in the symposium are testimonies to the living impact of Kornai's oeuvre on institutionalist analysis today.

Economic reforms and political changes often take place simultaneously. The outcomes of reforms in transitional countries depend on the sequence of these changes. Kornai developed his transition framework based on Central and Eastern Europe, and extended it to Asian nations. This article builds on Kornai's model and the institutional dialogue of economic development to construct and apply a model of transformation for Latin America. The aim is to better explain the relationship between institutional transformation and developmental outcomes over time. Our analysis utilises historical information and the views of current political leaders in Argentina. The analysis performed reflects on institutional performance, and evaluates the applicability of the proposed Latin American transition framework in practice. Based on the empirical evidence presented, we argue that economic transition is a path-dependent phenomenon, and that our model explaining the interaction of economic and political changes provides an explanation for the performance of institutional transformation in Argentina.

János Kornai's pioneering scholarship examined the mechanisms of the socialist system. Following the collapse of the Soviet Union, Kornai's main focus was on the transition process in former socialist countries in central Eastern Europe. This paper builds on Kornai's work on the socialist system by analyzing horizontal bargaining within every political branch in contemporary China. I argue that this horizontal bargaining within the party is enhanced by the vertical bargaining. Incorporating Kornai's work on socialism, the “party chief and mayor” template extends the bargaining model from one key figure and one group in the “king and council” template to two key figures and their respective confidants. In addition, it incorporates institutional constraints into the graphical model. It also defines a “collective decision probability function,” which shows how the party chief and mayor model reaches “checks and balances” that limit the policy space, regardless of whether the policy is exogenous or endogenous.