Institutionalism is an approach that emphasizes the role of institutions in shaping economic, political, and social behavior. It is a broad term that can refer to different theories and schools of thought, including institutional economics, institutional political economy, and institutional theory. Some key features of institutionalism include:
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Legal foundations: Institutionalism emphasizes the legal foundations of an economy and the role of institutions in shaping economic behavior.
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Evolutionary processes: Institutionalism focuses on the evolutionary, habituated, and volitional processes by which institutions are erected and then changed.
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Learning and bounded rationality: Institutional economics focuses on learning, bounded rationality, and evolution, rather than assuming stable preferences, rationality, and equilibrium.
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History: Institutionalism is frequently characterized by the attention it gives to history.
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Influence on behavior: Institutionalism analyzes the role of social institutions in influencing economic, political, and social behavior.
Institutionalism can refer to different theories and schools of thought, including new institutionalism, historical institutionalism, liberal institutionalism, and legal institutionalism.
