institutional economics


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institutional economics

approaches to economic analysis which emphasize the role of socioeconomic institutions and organizations in the causation of economic events. In a narrow sense, institutional economics was a movement opposed to the abstractions and excessive formalism of much orthodox economic analysis, and was especially associated with the work of Thorstein VEBLEN. More widely, the approach can be said to be consistent with much sociological analysis of economic life, which has been more interested in grounding theories of economic life in behavioural and institutional inquiry than has economics (see ECONOMIC SOCIOLOGY).
References in periodicals archive ?
Institutional economics postulates that extra-large enterprises are too big to fail.
David Lindsay (journalist and activist, Lanchester, County Durham); Professor Geoffrey Hodgson (Research Professor in Business Studies and Editor-in-Chief of the Journal of Institutional Economics, University of Hertfordshire); Neil Clark (writer and broadcaster); James Draper (journalist and activist, Lanchester, County Durham)
Following the lead of the new institutional economics, part of the literature argues that institutions cause differences in productivity and factor endowments which, in turn, explain economic development.
This book provides a look at the economic history of ancient Egypt covering the entire pharaonic period, 3000-30 BCE, and employing a New Institutional Economics approach to argue that the ancient Egyptian state encouraged an increasingly widespread and sophisticated use of writing through time, primarily in order to better document and more efficiently exact taxes for redistribution.
And political scientists, drawing on the New Institutional Economics literature, have examined infrastructure investment in the developing world, evaluating the relations between endogenous institutions and private investment.
And he also sees limits in the way New Institutional Economics and the varieties of institutional approaches might effectively explain his problem.
In my view, this treatment of the state in economic history, which was most directly derived from North's work in the literature, continues to be the dominant idea embedded in much of the work classified under the rubric "New Institutional Economics.
As a prominent example, institutional economics focus on markets and economic transactions shaped by institutional conditions and interactions between individuals and organizations that are characterized by bound ed rationality, evolving preferences and the ability to learn (Coase 1960, North 1981).
It is this emphasis on modes of governance which the Bloomington School shares with New Institutional Economics.
The New Institutional Economics is a rapidly growing interdisciplinary field combing economics, law, organization theory, political sciences, sociology, and anthropology.
Despite law and economic initiatives and emphasis on institutional economics, economists rarely talk about legal reform.
Her book "Prosperity Unbound: Building Property Markets with Trust" (Palgrave Macmillan) recounts her experience and expands on her methodology "Reality Check Analysis," which is considered one of the best practical applications of institutional economics to property rights issues.

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