Institutional Economics

Institutional economics focuses on understanding the role of the evolutionary process and the role of institutions in shaping economic behaviour. Its original focus lay in Thorstein Veblen's instinct-oriented dichotomy between technology on the one side and the "ceremonial" sphere of society on the other. Its name and core elements trace back to a 1919 American Economic Review article by Walton H. Hamilton. Institutional economics emphasizes a broader study of institutions and views markets as a result of the complex interaction of these various institutions (e.g. individuals, firms, states, social norms). The earlier tradition continues today as a leading heterodox approach to economics.

A significant variant is the new institutional economics from the later 20th century, which integrates later developments of neoclassical economics into the analysis. Law and economics has been a major theme since the publication of the Legal Foundations of Capitalism by John R. Commons in 1924. Behavioral economics is another hallmark of institutional economics based on what is known about psychology and cognitive science, rather than simple assumptions of economic behavior.

Read more about Institutional EconomicsInstitutional Economics, New Institutional Economics, Institutionalism Today, Criticism

Other articles related to "institutional economics, institutional, economics, economic":

Mesoeconomics - Areas Claimed To Be Mesoeconomic - Institutional Economics
... In the 1950s John Kenneth Galbraith began writing on the effects of institutional inertia and behavior on economics, drawing from work in management and studies in business ... Recently it has been argued that such institutional effects cause economic actors to behave in ways differently from rational expectation maximalizing and ...
Geoffrey Hodgson
... in the University of Hertfordshire, and also the editor-in-chief of the Journal of Institutional Economics ... spirit and intellectual tradition of the founders of institutional economics, particularly that of Thorstein Veblen ... His broad research interests span from evolutionary economics and history of economic thought to Marxism and theoretical biology ...
Institutional Economics - Criticism
... In other words, institutional economics have become so popular because it means all things to all people, which in the end of the day is the meaning of nothing ... Rather than being "institutional," Veblen, Hamilton and Ayres position is anti-institutional ...
Carsten Herrmann-Pillath - Important Works
... of Evolutionary Political Economy, (forthcoming, European Journal of Law and Economics, 2008) ... Identity Economics and the Creative Economy, Old and New, Cultural Science Vol. 1(1), SSRN-link Deducing Principles of Economics From Ontological Constraints on Information, Invited paper presented at the 2008 Annual Meeting of the ...

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