Abstract
If economics is going to study the rise and evolution of social institutions, a very simple methodological approach is suggested. We should start our analyses in a Lockean state of nature in which there are no social institutions at all, only agents, their preferences, and the technology they have at their disposal to transform inputs into outputs. The next step would be to study when, during the evolution of this economy, such institutions as money, banks, property rights, competitive markets, insurance contracts, and the state would evolve. Looking at economics this way has distinct pedagogical advantages, because it allows us to connect a highly abstract economic theory with the world as we view it through the institutions we observe in everyday life.
| Original language | English (US) |
|---|---|
| Title of host publication | Public Goods and Market Failures |
| Subtitle of host publication | A Critical Examination |
| Publisher | Taylor and Francis |
| Pages | 147-178 |
| Number of pages | 32 |
| ISBN (Electronic) | 9781040284681 |
| ISBN (Print) | 9781560005704 |
| DOIs | |
| State | Published - Jan 1 2024 |
ASJC Scopus subject areas
- General Economics, Econometrics and Finance
- General Business, Management and Accounting
- General Social Sciences