The difficulty in defining a field for the so-called institutional economics is the uncertainty of meaning of an institution. Sometimes an institution seems to mean a framework of laws or natural rights within which individuals act like inmates. Sometimes it seems to mean the behavior of the inmates themselves. Sometimes anything additional to or critical of the classical or hedonic economics is deemed to be institutional. Sometimes anything that is "economic behavior" is institutional. Sometimes anything that is "dynamic" instead of "static," or a "process" instead of commodities, or activity instead of feelings, or mass action instead of individual action, or management instead of equilibrium, or control instead of laissez faire, seems to be institutional economics.
John R. CommonsRelated topics
act action additional anything classical control defining difficulty dynamic economics equilibrium field institution mass meaning mean natural static LawsRelated quotes
Economic growth occurs if output grows faster than population. Given the described assumptions about the way people behave, economic growth will occur if property rights make it worthwhile to undertake socially productive activity. The creating, specifying and enacting of such property rights are costly... As the potential grows for private gains to exceed transaction costs, efforts will be made to establish such property rights. Governments take over the protection and enforcement of property rights because they can do it at a lower cost than private volunteer groups. However, the fiscal needs of government may induce the protection of certain property rights which hinder rather than promote growth; therefore we have no guarantee that productive institutional arrangements will emerge.
Douglass North
With the publication of J. M. Keynes's General Theory in 1936 and the mathematical formalizations of his theory by J. R. Hicks (1937) and others, the language of macro-economic theory became systems of simultaneous equations. These are general equilibrium systems of interdependence in the sense that the relationships describe an entire national economy, not just a particular industry or sector. The systems are usually not completely closed; they depend on exogenous parameters including instruments controlled by policy-makers. Seeking definite relationships of economic outcomes to policies and other exogenous variables, qualitative and quantitative, these models sacrifice detail and generality, limiting the number of variables and equations by aggregations over agents, commodities, assets, and time.
James Tobin
The universe is of the nature of a thought or sensation in a universal Mind... To put the conclusion crudely - the stuff of the world is mind-stuff. As is often the way with crude statements, I shall have to explain that by "mind" I do not exactly mean mind and by "stuff" I do not at all mean stuff. Still that is about as near as we can get to the idea in a simple phrase. The mind-stuff of the world is something more general than our individual conscious minds; but we may think of its nature as not altogether foreign to feelings in our consciousness... Having granted this, the mental activity of the part of world constituting ourselves occasions no great surprise; it is known to us by direct self-knowledge, and we do not explain it away as something other than we know it to be - or rather, it knows itself to be.
Arthur Eddington
No civilization can progress to the stability of continuous survival without certain and sure command of knowledge such as that contained in Dianetics. For Dianetics, skillfully used, can do exactly what it claims. It can, in the realm of the individual, prevent or alleviate insanity, neurosis, compulsions and obsessions and it can bring about physical well-being, removing the basic cause of some 70% of man's illnesses. It can, in the field of the family, bring about better accord and harmony. It can, in the field of nations or smaller groups such as those of industry, improve management to a point where these pitifully inadequate ideologies, for which men fight and die with such frightening earnestness, can be laid aside in favor of a workable technology.
L. Ron Hubbard
The conflict between the theories of Surrealism & pure abstraction leads many to look upon one as black & bad & the other as white & good. Yet it seems to me that a good work of art has always contained both abstract & surrealist elements – just as it has both classical & romantic elements (order & surprise?).. .Surrealism is widening the field of contemporary art & is giving more freedom to the artist (& perhaps what is not unimportant, – stretching the appreciation of the public). Abstraction is re-establishing fundamental laws; bringing back form to painting & sculpture. There are many products of surrealism which I personally dislike,.. ..but equally Unimportant to me are the empty decorations produced in the name of abstraction.
Henry Moore