The analysis of institutions - the social rules that lead human interactions - has been a marginalized topic in the development of the economy. However, the role that these common practices have is essential to comprehend the economic phenomena, being subject of discussion in different schools, which in the last 100 years have questioned the homogeneity of the mathematical models based on the rationality and functioning of the markets. Bernard Chavance gives us an introduction to the institutional economy and presents its ...
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The analysis of institutions - the social rules that lead human interactions - has been a marginalized topic in the development of the economy. However, the role that these common practices have is essential to comprehend the economic phenomena, being subject of discussion in different schools, which in the last 100 years have questioned the homogeneity of the mathematical models based on the rationality and functioning of the markets. Bernard Chavance gives us an introduction to the institutional economy and presents its most significant theoretical currents: heterodox institutionalism, the French theory of regulation, some approaches of economic sociology, and the "new institutional school" of America. This work reviews the economic theories about institutions to demonstrate the importance of rules, the organizations and hierarchies, and also to explain the causes of wealth and its distribution.
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