New-Institutionalism
New-Institutionalism refers to a revival of interest in institutions as a framework for understanding economic, political, and social phenomena, contrasting with the earlier views that often dismissed institutions as either residual or unimportant. This resurgence began in the late 20th century, particularly gaining traction in the fields of:
Historical Context
The roots of New-Institutionalism can be traced back to the critique of neoclassical economics and the behavioral revolution in political science during the 1970s and 1980s. Scholars began to argue that institutions matter because they structure political, economic, and social interactions, shaping outcomes in ways that purely rational choice models could not explain.
Key Concepts
Here are some pivotal concepts within New-Institutionalism:
- Institutions - Defined not just as formal organizations but also as rules, norms, conventions, and practices that structure behavior and constrain choices.
- Path Dependence - The idea that choices made in the past significantly influence the future, often making certain outcomes more likely due to the established institutional framework.
- Transaction Costs - The costs associated with making an economic exchange, which institutions can reduce or increase.
- Institutional Complementarity - How different institutions interact and reinforce each other, creating systemic stability or change.
Subdivisions
New-Institutionalism has developed into several streams:
- Rational Choice Institutionalism - Focuses on how individuals, as rational actors, use institutions to achieve their goals.
- Historical Institutionalism - Emphasizes how institutions evolve over time and how historical events shape current institutional arrangements.
- Sociological Institutionalism - Looks at how institutions shape norms, culture, and identity, often through processes of isomorphism where organizations adopt similar structures or practices.
- Discursive Institutionalism - Examines the role of ideas and discourse in institutional change and stability.
Influential Scholars
Some key figures in the development of New-Institutionalism include:
Impact and Criticism
New-Institutionalism has had a significant impact on:
- Understanding policy change and stability.
- Analyzing the role of institutions in economic development.
- Explaining why certain reforms succeed or fail.
Criticism often revolves around:
- Over-emphasizing stability and path dependence, potentially underestimating the capacity for change.
- The difficulty in operationalizing concepts like "institution" in empirical research.
External Links
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