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On the survival of imperfect institutions

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  • Thrainn Eggertsson

    (Department of Economics, University of Iceland, Iceland/Department of Politics, New York University,)

Abstract

When social structures are stable and social systems yield expected and desirable results, there is relatively less demand for institutional economics than during times of change. Surge of interest in institutional analysis usually comes during times when countries contemplate basic reform. The 1980s and early 1990s were such a period. NIE offered a fresh way of thinking about economic organization and its broader social context and immediately caught the attention of reformers. Yet the original contributions rarely dealt explicitly with institutional policy. This paper is concerned with the lessons of NIE for major reform or institutional policy. I particularly emphasize opportunities and limits for reform that reflect the knowledge problem as well as political and social responses to reform. Social science has not developed a comprehensive theory of social systems; rather we have accumulated bits of useful insights, often without explicitly knowing in what circumstances the insights apply. The main purpose of this paper is to discuss the lessons of modern institutional theory for institutional reform.

Suggested Citation

  • Thrainn Eggertsson, 2006. "On the survival of imperfect institutions," Revista de Analisis Economico – Economic Analysis Review, Universidad Alberto Hurtado/School of Economics and Business, vol. 21(2), pages 13-24, December.
    • Handle: RePEc:ila:anaeco:v:21:y:2006:i:2:p:13-24
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    References listed on IDEAS

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    Cited by:

    1. Katarzyna Bentkowska, 2021. "Formal and Informal Institutions’ Changes in the Sharing Economy Development," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 362-375.
    2. Ewa Gruszewska, 2011. "Disintegration in ana institutionalized world," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 7(1), pages 49-66, December.
    3. Ewa Gruszewska, 2012. "Transformacja instytucji nieformalnych w Polsce," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 61-83.

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    More about this item

    Keywords

    Institutional Reform; Social Technologies; Knowledge Problem; Political and Social Reaction.;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • H1 - Public Economics - - Structure and Scope of Government

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