St Louis Science Center

Institutions, Institutional Change and Economic Performance

Continuing his groundbreaking analysis of economic structures, Douglass North develops an analytical framework for explaining the ways in which institutions st louis science center and institutional change affect the performance of economies, both at a given time st louis science center and over time. Institutions exist, he argues, due to the uncertainties involved in human interaction; they are the constraints devised to structure that interaction. Yet, institutions vary widely in their consequences for economic performance; some economies develop institutions that produce growth st louis science center and development, while others develop institutions that produce stagnation. North first explores the nature of institutions st louis science center and explains the role of transaction st louis science center and production costs in their development. The second part of the book deals with institutional change. Institutions create the incentive structure in an economy, st louis science center and organizations will be created to take advantage of the opportunities provided within a given institutional framework. North argues that the kinds of skills st louis science center and knowledge fostered by the structure of an economy will shape the direction of change st louis science center and gradually alter the institutional framework. He then explains how institutional development may lead to a path-dependent pattern of development. In the final part of the book, North explains the implications of this analysis for economic theory st louis science center and economic history. He indicates how institutional analysis must be incorporated into neo-classical theory st louis science center and explores the potential for the construction of a dynamic theory of long-term economic change. Douglass C. North is Director of the Center of Political Economy st louis science center and Professor of Economics st louis science center and History at Washington University in St. Louis. He is a past president of the Economic History Association st louis science center and Western Economics Association st louis science center and a Fellow, American Academy of Arts st louis science center and Sciences. He has written over sixty articles for a variety of journals st louis science center and is the author of The Rise of the Western World: A New Economic Hi...
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