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The Contribution of Douglass North to New Institutional Economics

Author

Listed:
  • Claude Ménard

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Mary M. Shirley

    (RCI - Ronald Coase Institute - Ronald Coase Institute)

Abstract

Douglass North, along with Ronald Coase and Oliver Williamson, transformed the early intuitions of new institutional economics into powerful conceptual and analytical tools that spawned a robust base of empirical research. NIE arose in response to questions not well explained by standard neoclassical models, such as make or buy and why rich or poor? Today NIE is a success story by many measures: four Nobel laureates in under 20 years, increasing penetration of mainstream journals, and significant impact on major policy debates from anti-trust law to development aid. This paper provides a succinct overview of North's evolving ideas about institutions and explains how North's work shaped the emerging field of new institutional economics and had a potent impact on economics and the social sciences more broadly. North provides a powerful example of how persistent and well placed confidence and hard work can productively transform the status quo. North's influence continues strong and his enthusiasm for exploring new frontiers and cooperating across artificial academic boundaries has never waned.

Suggested Citation

  • Claude Ménard & Mary M. Shirley, 2011. "The Contribution of Douglass North to New Institutional Economics," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00624297, HAL.
    • Handle: RePEc:hal:cesptp:halshs-00624297
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00624297
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    References listed on IDEAS

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    1. Claude Ménard & Mary M. Shirley, 2010. "A History of New Institutional Economics: From Intuition to Institutionalization," Post-Print halshs-00654342, HAL.
    2. Avner Greif, 2008. "Commitment, Coercion and Markets: The Nature and Dynamics of Institutions Supporting Exchange," Springer Books, in: Claude Ménard & Mary M. Shirley (ed.), Handbook of New Institutional Economics, chapter 28, pages 727-786, Springer.
    3. Mary M. Shirley, 2005. "Institutions and Development," Springer Books, in: Claude Menard & Mary M. Shirley (ed.), Handbook of New Institutional Economics, chapter 24, pages 611-638, Springer.
    4. Martens,Bertin & Mummert,Uwe & Murrell,Peter & Seabright,Paul, 2008. "The Institutional Economics of Foreign Aid," Cambridge Books, Cambridge University Press, number 9780521055390, October.
    5. North, Douglass C. & Weingast, Barry R., 1989. "Constitutions and Commitment: The Evolution of Institutions Governing Public Choice in Seventeenth-Century England," The Journal of Economic History, Cambridge University Press, vol. 49(4), pages 803-832, December.
    6. Xavier Sala-i-Martin, 2002. "15 Years of New Growth Economics : What Have we Learnt?," Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 5(2), pages 5-15, August.
    7. Whitney, William G., 1966. "Growth and Welfare in the American Past: A New Economic History. By Douglass C. North. Englewood Cliffs, N.J.: Prentice-Hall, Inc., 1966. Pp. xiv, 198. $5.95 (clothbound); $2.95 (paperback)," The Journal of Economic History, Cambridge University Press, vol. 26(3), pages 395-396, September.
    8. Xavier Sala-i-Martin, 2002. "Fifteen Years of New Growth Economics: What Have We Learned?," Central Banking, Analysis, and Economic Policies Book Series, in: Norman Loayza & Raimundo Soto & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Series Editor) (ed.),Economic Growth: Sources, Trends, and Cycles, edition 1, volume 6, chapter 2, pages 041-060, Central Bank of Chile.
    9. Greif,Avner, 2006. "Institutions and the Path to the Modern Economy," Cambridge Books, Cambridge University Press, number 9780521671347, September.
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    13. Cheung, Steven N S, 1969. "Transaction Costs, Risk Aversion, and the Choice of Contractual Arrangements," Journal of Law and Economics, University of Chicago Press, vol. 12(1), pages 23-42, April.
    14. North, Douglass C, 1994. "Economic Performance through Time," American Economic Review, American Economic Association, vol. 84(3), pages 359-368, June.
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    17. Barzel,Yoram, 1997. "Economic Analysis of Property Rights," Cambridge Books, Cambridge University Press, number 9780521597135, February.
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    19. William Easterly, 2002. "The Elusive Quest for Growth: Economists' Adventures and Misadventures in the Tropics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262550423, April.
    20. Brousseau,Éric & Glachant,Jean-Michel (ed.), 2008. "New Institutional Economics," Cambridge Books, Cambridge University Press, number 9780521700160, October.
    21. Douglass C. North, 1968. "Sources of Productivity Change in Ocean Shipping, 1600-1850," Journal of Political Economy, University of Chicago Press, vol. 76(5), pages 953-953.
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    Cited by:

    1. Gabriela Przeslawska, 2019. "Significance of uncertainty in explaining institutional change in Douglass C. North’s approach," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 18(3), pages 331-346, September.
    2. Claude Diebolt & Michael Haupert, 2018. "A cliometric counterfactual: what if there had been neither Fogel nor North?," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 12(3), pages 407-434, September.
    3. repec:zbw:inwedp:702017 is not listed on IDEAS
    4. Martin Kniepert, 2017. "Bringing Institutions into Economics when Teaching Economics as a Minor Subject," Working Papers 702017, University of Natural Resources and Life Sciences, Vienna, Department of Economics and Social Sciences, Institute for Sustainable Economic Development.
    5. Peter Lloyd & Cassey Lee, 2016. "A Review of the Recent Literature on the Institutional Economics Analysis of the Long-Run Performance of Nations," Department of Economics - Working Papers Series 2019, The University of Melbourne.
    6. Becherair, Amrane, 2014. "Institutions and Economic Growth in the MENA Countries: An Empirical Investigation by Using Panel data model," MPRA Paper 57683, University Library of Munich, Germany, revised 04 Aug 2014.
    7. Ambrosino, Angela & Fiori, Stefano, 2017. "How Can Formal Norms Change Informal Norms? Douglass North’s Approach to Ideologies and Institutional Change," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201707, University of Turin.

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    Keywords

    New Institutional Economics; institutions; transaction costs; development and growth;
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