Three approaches to institutions in economic analysis

Sergio Cesaratto ()

Department of Economics University of Siena from Department of Economics, University of Siena

Abstract: I compare three approaches to economic history and institutions: the classical surplus approach, the Polanyian view, and New Institutional Economics (NIE). In the first institutions are seen in relation to the production and distribution of the social surplus. Research in economic anthropology, archaeology and history has validated the fecundity of this approach. The Polanyian criticism to classical and neoclassical theories is then considered and appreciated, although some severe limitations are envisaged. Most of the paper concentrate upon Douglass North, the NIE most representative author in the field of economic history. Striking of North is the attempt to replicate Marx’s relation between economics and institutions in the context of neoclassical theory. Transaction costs economics revealed a dead end in explaining institutions and the power of predatory élites. Lacking a material anchor such as surplus theory, North’s theory became progressively more elusive and indeterminate. On balance, a surplus-based Marxist-Polanyian approach is the most promising direction although much further work is still necessary to explain the coevolution of the economic and institutional sides of the economy

Keywords: Institutions; Surplus approach; Karl Polanyi; New Institutional Economics; Douglass North (search for similar items in EconPapers)
JEL-codes: A12 B15 B51 B52 Z13 (search for similar items in EconPapers)
Date: 2023-04
New Economics Papers: this item is included in nep-evo, nep-his, nep-hme, nep-hpe and nep-pke
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Persistent link: https://EconPapers.repec.org/RePEc:usi:wpaper:899

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