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On the validity of the division into formal and informal institutions

Author

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  • Izabela Ostoj

    (University of Economics in Katowice)

Abstract

Motivation: Definitions and classifications constitute the most important elements of each theory. The division of institutions into formal and informal is commonly applied within new institutional economics. In his papers devoted to institution measurement S. Voigt developed the division of institutions into internal and external, argued its functionality and, to a certain extent, its superiority. Aim: The aim of this paper is to investigate and assess the validity and applicability of the division of institutions into formal and informal from the perspective of the analysis of social and economic phenomena. Results: Based on literature, as well as drawing on the origins of the institution classification and referenced examples, it was proved that the division into formal and informal institutions is not only at least equally precise as other classifications, but it is also consistent and logical, which determines its high usefulness in scientific research.

Suggested Citation

  • Izabela Ostoj, 2019. "On the validity of the division into formal and informal institutions," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 18(1), pages 61-72, March.
    • Handle: RePEc:cpn:umkeip:v:18:y:2019:i:1:p:61-72
    DOI: 10.12775/EiP.2019.005
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    References listed on IDEAS

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    More about this item

    Keywords

    institutions; formal institutions; informal institutions; legal origin;
    All these keywords.

    JEL classification:

    • B5 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior

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