Institutional Econ a Comparison of the Old

Institutional Econ A Comparison of the Old and New Institutionalism: Perspectives on and Applications of Economic Theory This essay will consist of a review of literature and scholarship regarding the various perspectives and perceived uses of certain social and economic institutions at various points throughout the historical development of the modern era.

Through a comparison of what has been dubbed "Old" and "New" Institutionalism, a better and more comprehensive understanding of both large scale theoretical frameworks can be developed, leading in turn to more useful and applicable understandings of current economic mechanisms and situations. Such understandings will enable more accurate and beneficial practical applications of economic theory to be developed and implemented on national and global scales, and thus this research will contribute directly to efforts in economic scholarship and policy making that attempt to lead to greater economic stability and prosperity.

Extended Abstract The main subject of this essay is a comparison of Old and New Institutionalism, and a gauging of their continued relevance and applicability to modern economic situations, trends and events. Essentially, a better and more comprehensive understanding of how institutions might influence and impact upon the modern global economy will derived in the essay. This topic is both academically interesting due to the variety of information that will be gathered and compared as well as important due to the potential effects its findings can have.

After completion, this essay will convey to the reader an accurate overview of the development of economic theories as they involve and are affected by Institutionalism, and the reader will also understand how institutions might influence and impact upon modern economic developments and situations.

This will answer questions as to how previous theories of institutionalism developed and were shaped by each other, provide more detailed understandings of the individual theories of institutionalism themselves, and also provide more concrete answers than are currently available as to how modern institutions and their evolution has been influenced by and has influenced economic growth and development both in specific nations and in the global economy as a whole.

This essay will set out to prove that a comprehensive and historical understanding of how institutions have been perceived in relation to economic development is necessary t understanding their influence today. Plan of the Essay: The introduction of the essay will contain an overview of institutional theories, including broad definitions of what are considered "institutions" in the social and economic sense.

The body sections of the essay will include, in order, an examination and description of Old Institutionalism; the same treatment of the theories and theorists of New Institutionalism; a synthesis and comparison of these two over-arching grand theories of economic institutions; and an application of these synthesized theories to modern economic situations and the truly globalized world. The conclusion will recap the key points of the essay and point towards potential applications of its findings.

Research Summary: Prior to writing this proposal, research was conducted to provide an overview and refreshed understanding of Old and New Institutionalism, and to develop preliminary thoughts on how each of these theories of institutions and their influences relate -- and fail to relate -- to current economic situations. This background research primarily consisted of reading basic articles on the subject, locating more advanced and specific articles on the topic, and reading introductory portions of these articles as well as skimming them for more detail.

A full study of these sources will constitute the majority of the research that will be conducted between now and the completion of the essay, with supplemental reading from the references sources in the main article engaged in as required or desired, and to fill in certain details are flesh out certain arguments that are found to be lacking in initial drafts. Main Sources: Veblen, Thorstein B. (1898) 'Why Is Economics Not an Evolutionary Science?', Quarterly Journal of Economics, 12(3), July, pp. 373 -- 97.

Veblen is one of the most respected economists of the nineteenth century, and his views on the issue of economic study and theory development will contribute greatly to a discussion of the evolution and continuing application of certain theories. Chavance, Bernard. 2009. Institutional Economics. Francis Wells. London: Routledge. (p. 1-44).

This source looks at economics from a more modern perspective, examining the manner in which industrialization has shaped economic theory and practice and has been shaped by -- and helped to shape -- a variety of social and economic institutions as the problems and responsibilities of society shifted. Fine, Ben & Milonakis, D. (2009) From Political Economy to Economics: method, the social and the historical in the evolution of economic theory, London: Routledge. (Chapter 9 & 10).

This source touches on both practical and academic issues in the development of economic theory, policy, and related/influential institutions. It will serve as a very useful overview of certain theories and implications of Old Institutionalism and the ways in which they evolved and.