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A call for institutional analysis: practicing polycentric political economy in policy research

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  • Anne Hobson

    (Mercatus Center at George Mason University)

  • Eileen Norcross

    (Mercatus Center at George Mason University)

Abstract

In Public Governance and the Classical Liberal Perspective, Aligica et al. (2019) highlight the importance of conducting institutional analysis and experimentation as a means toward robust, adaptable polycentric governance. For policy researchers, engaging in the practice of polycentric political economy means analyzing the role of alternative governance mechanisms at the constitutional, policy, and operational levels of social interaction. In order to demonstrate how policymakers can engage in institutional analysis at each level, we examine the case study of state regulatory reform. We find that the pursuit of marginal improvements within an existing governance framework can contribute to institutional reform if researchers are focused on long-run institutional change. This requires looking at policy research as part of a process aimed at institutional experimentation and the reimagination of governance frameworks within a polycentric environment where researchers engage in coproduction of an adaptive and sustainable governance system.

Suggested Citation

  • Anne Hobson & Eileen Norcross, 2021. "A call for institutional analysis: practicing polycentric political economy in policy research," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 34(3), pages 347-359, September.
    • Handle: RePEc:kap:revaec:v:34:y:2021:i:3:d:10.1007_s11138-019-00491-8
    DOI: 10.1007/s11138-019-00491-8
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    References listed on IDEAS

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    1. Bentley Coffey & Patrick McLaughlin & Pietro Peretto, 2020. "The Cumulative Cost of Regulations," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 38, pages 1-21, October.
    2. Elinor Ostrom, 2010. "Beyond Markets and States: Polycentric Governance of Complex Economic Systems," American Economic Review, American Economic Association, vol. 100(3), pages 641-672, June.
    3. Runst, Petrik & Wagner, Richard E., 2011. "Choice, emergence, and constitutional process: a framework for positive analysis," Journal of Institutional Economics, Cambridge University Press, vol. 7(1), pages 131-145, March.
    4. Michael McGinnis & James Walker, 2010. "Foundations of the Ostrom workshop: institutional analysis, polycentricity, and self-governance of the commons," Public Choice, Springer, vol. 143(3), pages 293-301, June.
    5. Jones, Laura, 2015. "Cutting Red Tape in Canada: A Regulatory Reform Model for the United States?," Annals of Computational Economics, George Mason University, Mercatus Center, November.
    6. James Buchanan, 1990. "The domain of constitutional economics," Constitutional Political Economy, Springer, vol. 1(1), pages 1-18, December.
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