PAPM 1000 Chapter 19: CHAPTER 19 – THE INSTITUTIONALIST SCHOOL

• School: Carleton University
• Department: Public Affairs and Policy Management
• Course: PAPM 1000
• Professor: Marc Andre Gagnon

Document Summary

In economic activity, there are also patterns of collective action that are greater than the sum of the parts: for example, a union develops a character, an ideology, and a method of operation of its own. It features cannot be deduced from the study of the individual members who belong to it: economics, they assert, is intertwined with politics, sociology, law, custom, ideology, tradition, and other areas of human belief and experience. Institutional economics deals with social processes, social relationships, and society in all its facets: focus on institutions. Emphasized the role of institutions in economic life. I(cid:374)stead of aski(cid:374)g (cid:862)(cid:449)hat is? (cid:863), the i(cid:374)stitutio(cid:374)alists asked (cid:862)ho(cid:449) did (cid:449)e get here, a(cid:374)d (cid:449)here are (cid:449)e goi(cid:374)g? (cid:863: rejection of the idea of normal equilibrium. Institutionalists recognized serious differences of interests: people are cooperative, collective creatures. Whom did institutionalism benefit or seek to benefit: embodied the middle-class desire for reform in an era of growing big business and banker capitalism.