The contributions of the modern institutional economy have focused on the fundamental fact that the relationships among economic agents develop not only within a typical economic context but also within a specific institutional framework, with the level of  efficiency creating either positive or negatives consequences on economic activities. From this perspective, the modern institutional economy has contributed economic meaning to law to the extent that it influences transaction costs inherent to the relationships among the economic agents.

In this context, the focus on law, regulation and institutional reform processes is therefore a priority. The State, which can intervene in reducing transaction costs, becomes both fundamental as well as an obstacle to progress, due to economic freedom developing within a limited government context.

The objective of JSDSE-CM is to put fields of research into motion, leading to the  quantification of the transaction costs and their repercussions on economic development, both on a regional and national level, as well as within the EU.

The analysis will focus on the economy of Madrid, especially in the services sector, due to it being the most important part of the economy of this region.

This network also proposes training programs for research personnel as well as the creation of a post-graduate program in “Institutional framework and economic growth”.