DR OLSON'S ANTIDOTE FOR INSTITUTIONAL SCLEROSIS

John Considine and Robert Butler

Economic Affairs, 2010, vol. 30, issue 1, 55-60

Abstract: An important part in the evolution of Mancur Olson's economic thinking was delivered to an Institute of Economic Affairs (IEA) symposium in June 1989. The economist who had identified, what he labelled, the disease of institutional sclerosis was now identifying an improved version of the antidote and the circumstances under which the antidote might work. While Olson had previously identified economic understanding as a possible antidote, he acknowledged that he did not know how, and if, it might work. Olson's IEA paper represents the next step. Dr Olson returned to examine the ‘patient’ (Olson's term) that he previously held up as an exemplar case of institutional sclerosis – Great Britain. His examination revealed that it was a particular type of understanding that was important and that it was only likely to work under particular circumstances.

Date: 2010
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