What Is Institutional Economics?

Institution refers to the rules in interpersonal communication and the structure and mechanism of social organizations. Institutional Economics is a branch of economics that takes institutions as research objects. It studies the impact of institutions on economic behavior and economic development, and how economic development affects the evolution of institutions. The study of institutional economics began with the theory of the leisure class by American economist Veblen; the new institutional economics originated from Ronald Coase's "The Nature of the Enterprise". Coase's contribution lies in the concept of transaction costs. It introduces economic analysis and points out the different roles of enterprises and markets in economic interaction. Oliver Williamson, Harold Demsetz, and others have made significant contributions to this emerging discipline. For nearly 30 years, the new institutional economics has been a branch of booming economics.

Institutional Economics

(Branch of Economics)

nowadays

Early Institutional Schools Against Isolation of Classical Schools

Institutional school research has been associated with

Representatives of this genre are

This can be said to be the mainstream of contemporary institutional analysis.

Representatives of this genre are

The most famous representative is

The representative is Bromley, who claimed in his book "Economic Interests and Economic Institutions-Theoretical Basis of Public Policy" that his work is a Marxist analysis and that both Smith and Marx are inclusive View. They sought to find a balance between Marx's institutional analysis and mainstream institutionalism. The French school of regulation has also conducted in-depth research on western postmodern production methods and institutional structures.