institutional economics

E886927

Institutional economics is a school of economic thought that emphasizes the role of social, legal, and political institutions in shaping economic behavior and outcomes.

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institutional economics canonical 1

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Predicate Object
instanceOf economic theory
school of economic thought
appliedTo corporate governance
economic development
industrial organization
labor markets
public policy analysis
arguesThat institutional change affects economic performance
institutions reduce uncertainty
institutions structure incentives
associatedWith Douglass C. North NERFINISHED
John R. Commons NERFINISHED
Oliver Williamson NERFINISHED
Ronald Coase NERFINISHED
Thorstein Veblen NERFINISHED
Wesley C. Mitchell NERFINISHED
contrastsWith neoclassical economics
critiques assumption of fully rational individuals
purely individualistic explanations of economic outcomes
developedIn United States NERFINISHED
emphasizes evolutionary processes in the economy
historical context of economic processes
role of institutions in shaping economic behavior
focusesOn economic institutions
legal institutions
political institutions
social institutions
hasSubfield new institutional economics
old institutional economics
includesConcept bounded rationality
collective action
path dependence
property rights
transaction costs
influencedBy American pragmatism NERFINISHED
evolutionary theory
legal realism
originatedIn late 19th century
relatedTo behavioral economics
economic sociology
law and economics
political economy
studies interaction between culture and economics
interaction between law and economics
interaction between politics and economics
viewsEconomicBehaviorAs embedded in legal rules
embedded in political power relations
embedded in social norms

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Thorstein Veblen movement institutional economics