Introducing the Transaction Cost Economics (TCE), the article, as its main concerns, tries to explain the method of making the concept of Transaction Cost operational and applying it in empirical studies. In this paper, the writer tries to provide some answers to these questions: How do followers of institutionalism and Transaction Cost economists use this concept in practice and empirical studies? And basically, do they have any coherent method to deal with subject matters of Economics or that institutional approach is only story telling?New institutional Economics (NIB)are divided into two main areas; institutional environment and institutional arrangement. TCE is related to the institutional arrangement and Williamson has related it into governance structure. Coase's article entitled "The Nature of the Firm" is the beginning of this approach which emphasizes the firm must be considered as a governance structure, rather than a production function or a technological construction. TCE tends to make the concept of Transaction Cost operational and for achieving this purpose, uses the idea of firm as a governance structure and develop "discriminating alignment" hypothesis.

This paper is responsible to analyze the role and evolutions of coase theorem. First section is devoted to mention background of the subject. In second and third sections, Transaction Cost and coase theorem will be discussed. Analyses of the above objects are job of the fourth section, during which concluding remarks are mentioned. In this paper, coase theorem is analyzed as benchmark and pilot for extending new theories in Economic literature, among them are public choice and neo-institutionalism.

I am going to assess shortcomings of Transaction Cost Economics (TCE) of Oliver Williamson My argument is that this analysis suffers from misidentification of the relevant problem of the theory, analytical incoherence, inconsistent empirical support and methodological defects. In formulating Coase's fundamental idea, Williamson accepts an efficient equilibrium which occurs once forever, thus he can not identify the main 'problem of organization theory and he can not explain the evolution of organization and society as a whole. His analytical problem originates from rationality presumption. He accepts rationality IS bounded and as a consequence all contracts are incomplete. But he argues that rationality is not so bounded that agents are not able to choose the best and less Costly incomplete contracts via their farsightedness. Despite the well-known claim that TCE are supported by vast empirical studies, deep reviews of literature show that empirical evidence does not corroborate TCE hypothesis who wholeheartedly. Even if this claim is true and TCE hypothesis and predictions are confirmed by empirical data, (1) this does not mean Transaction Costs are minimized and (2) deriving policy implication for improving organization and society is impossible yet. From methodological point of view, this approach assumes Systems are close, and establish fix relations among variables. From this instrumental point of view reality is constrained to empirical and observable areas, and because of this view understanding observed reality and casual power of unobservable reality is impossible.

The purpose of this paper is to open new horizons for decision-making and resource allocation system in Iran in order to meet the national development goals. To this end, we have relied on theoretical framework of institutionalism and the important finding of historical institutionalists that “History of development is the Economic history of institutional innovations that reduce Transactions Cost” to analize underlying factors of institutional changes and significant role of government and historical context in path of institutional innovations of reducing Transaction Cost and features of said innovations that result in development and reduction of Transaction Cost in developed societies.Also, by referring to the Economic history of our country, we have tried to render and study important evidence of prominent achievements to reduce Transactions Cost. To achieve such purpose, we have presented two samples of said innovations in post-revolution Iran "clarification of Costs and sources that are based on dollar unit" and "clarification of foreign trade rules" and we have compared the situation before and after these innovations. The result of this research indicates that in the context of the political economy of Iran, it is possible to increase the speed of realization of national development goals trough institutional innovations of increasing opportunity Cost for rent seeking and drowing up manufacturers’s trust.

The optimal selection of portfolio is one the most important decisions in managing investment funds. Several approaches have been proposed to determine what is the best trading strategy. Most of these common approaches are based on single period optimization, however, as investment is a long-term concept, such short term profit maximization cannot fully exploit the opportunities that an investor might get if he/she looks into a longer term. To this end, in this paper, we intend to extend the single-period optimization into a multi-period optimization and also, to make it more realistic, we will incorporate Transaction Cost in our model. To investigate the validity of the proposed scheme, we have analyzed several examples using which we have presented the steps of our approach and also statistically compared the performance of the single and multi- period optimization using Mann-Whitney U test. Based on the results of this paper, we can conclude that multi-period and single-period optimization might have similar performance if we look at short time span of the system. However the superiority of multi-period optimization becomes more evident as we extend the time span of the system which gives multi-period scheme more freedom to suggest better portfolio selections.

The optimal selection of portfolio is one the most important decisions in managing investment funds. Several approaches have been proposed to determine what is the best trading strategy. Most of these common approaches are based on single period optimization, however, as investment is a long-term concept, such short term profit maximization cannot fully exploit the opportunities that an investor might get if he/she looks into a longer term. To this end, in this paper, we intend to extend the single-period optimization into a multi-period optimization and also, to make it more realistic, we will incorporate Transaction Cost in our model. To investigate the validity of the proposed scheme, we have analyzed several examples using which we have presented the steps of our approach and also statistically compared the performance of the single and multi- period optimization using Mann-Whitney U test. Based on the results of this paper, we can conclude that multi-period and singleperiod optimization might have similar performance if we look at short time span of the system. However the superiority of multi-period optimization becomes more evident as we extend the time span of the system which gives multi-period scheme more freedom to suggest better portfolio selections.

The paradigm includes a set of values, beliefs and perceptions of reality with theories based on them, which uses a distinctive methodology to achieve research goals. The dominant paradigms in the humanities are Positivism, Interpretation, Criticism, Complexity and Postmodernism. This research seeks to understand the meta-theoretical and paradigmatic typology of Economic schools by using the documentary and content analysis. The results show that Neoclassical is positivist. Austrian tendencies are in the region of complexity, but the use of hermeneutics puts New Austrians closer to the interpretive paradigm, while the older part tends to be a Positivism. The existence of variable structures in the Post-Keynesian and Evolutionary indicates the influence of the Complexity. OIE is dominated by the Criticism because of its emphasis on domination and dialectics. NIE uses the principles of Neoclassical and OIE as opposing currents. The elimination of this inconsistency has been due to the invention of Transaction Costs, which provides the basis for a paradigm shift from Positivism and Criticism to Complexity. The Transaction Cost is the unit of analysis and the connection of institutions to Economic performance, the use of which will lead to objectivity and generalization.