Topic:Institutional economics
From Wikiversity
 Please help develop this page
This page was created, but so far, little content has been added. Everyone is invited to help expand and create educational content for Wikiversity. If you need help learning how to add content, see the editing tutorial and the MediaWiki syntax reference. Please do not simply copy-and-paste large chunks from other projects. |
|
The " Institutionalist approach" refers to school of thought that seek to explain political, historical, economic and social institutions such as government, law, markets, firms, social conventions,religion, the family, etc. in the language of Neoclassical economic theory.
Institutions are developed from innovations in the economic system at some point of time in the history. For example when the production pattern shifted from hunting to farming, the institution of villages developed from that of hunting tribes. The institution called 'firm' was developed with the industrial age .
The institutions and their behaviour then becomes an important factor in further changes in the economy.
