Growth and institutional changes: a historical evolution

This paper highlights the fact that neoclassical theory cannot explain the process of economic change. In an uncertain and ever-changing world, a theory based on static equilibrium models is of little help. Whereas we have placed the institutions at the centre of the understanding of economic system...

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Detalles Bibliográficos
Autor: Morselli, Alessandro
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2021
País:Brasil
Institución:EDITORA 34
Repositorio:Revista de Economia Política
Idioma:inglés
OAI Identifier:oai:ojs2.centrodeeconomiapolitica.org:article/2153
Acceso en línea:https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/2153
Access Level:acceso abierto
Palabra clave:Mudança institucional
crenças
crescimento
incerteza
instituições
racionalidade
teoria do jogo
Institutional change
beliefs
growth
uncertainty
institutions
rationality
game theory
Descripción
Sumario:This paper highlights the fact that neoclassical theory cannot explain the process of economic change. In an uncertain and ever-changing world, a theory based on static equilibrium models is of little help. Whereas we have placed the institutions at the centre of the understanding of economic systems, since they constitute their incentive structure. Thus, economic change is largely an intentional process created by individuals’ perceptions of the consequences of their actions. These perceptions, coming from the beliefs of individuals, combine with their preferences. In the end, a dynamic theory of economic change will not be built, but an attempt will be made to understand the link between institutions and economic growth, the process of change, and to develop assumptions, within its limits, capable of improving the human environment and economic results. JEL Classification: B15; B25; B52.