Historical specificity or universality: the role of economic history in institutional and neo-institutional economics

Abstract

This article attempts a comparative presentation of two institutional traditions in economics, the Old and the New Institutional. Emphasis is given in their common central subject, institutions, and their role in economic evolution. An attempt is also made to pinpoint their fundamental differences with reference to their attempts at explorating the economic past. The interrogation takes place in three parts. Part 1 examines the way in which the two traditions tackle the questions of the effects of institutions on economic activity and the causes of economic change. Part 2 investigates the question of economic and institutional change and the influence of politics on economic activity. Finally, in part 3, the basic conclusions are reported and an evaluation of the two approaches is made.

JEL Classification: 020, 030, 040