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Toward a theory of Smart Institutions

Author

Listed:
  • Prateek Goorha

    (RMIT University)

  • Vijay Mohan

    (RMIT University)

Abstract

We present an analytical approach to institutional analysis that draws inspiration from control process engineering in the physical sciences. We characterize smart institutions as having three foundational features. First, smart institutions are context sensitive and expressly allow for a unified consideration of social, political and economic factors, thereby providing a richer and more eclectic approach to their operation. Second, smart institutions are forward-looking in their operation rather than deriving from their past functions and purpose in contrast to most generic institutions. Third, as opposed to generic institutions, smart institutions emphasize the role of information and specifically that of subjective social feedback on institutional performance. A theory of smart institutions, consequently, presents distinct advantages over traditional institutional analysis.

Suggested Citation

  • Prateek Goorha & Vijay Mohan, 2016. "Toward a theory of Smart Institutions," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 5(1), pages 1-23, December.
    • Handle: RePEc:spr:jecstr:v:5:y:2016:i:1:d:10.1186_s40008-016-0047-6
    DOI: 10.1186/s40008-016-0047-6
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    More about this item

    Keywords

    Institutional analysis; Institutional development; Control process engineering; Information entropy; Fuzzy feedback;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • P0 - Political Economy and Comparative Economic Systems - - General

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