Orthodoxy and heterodoxy in analyzing institutions

2003 ◽  
Vol 30 (7) ◽  
pp. 798-826 ◽  
Author(s):  
Milan Zafirovski
Keyword(s):  
Social Science ◽  
Economic Sociology ◽  
Institutional Economics ◽  
Social Institutions ◽  
New Institutional Economics ◽  
Economic Behavior ◽  
Interdisciplinary Treatment ◽  
Historical School ◽  
Classical Economic ◽  
Further Development

The rediscovery and analytical reconstitution are present tendencies in much of social science, especially economics and sociology. The emergence and expansion of the so‐called new institutional economics exemplify these tendencies as do attempts at revival and rehabilitation of the old institutional economics. Analogous tendencies have been manifested in sociology by the further development of economic sociology, especially by various reformulations of its classical premise of institutional structuration and embeddedness of economic behavior. Nevertheless, much of mainstream economics tends to neglect or play down certain salient divergences between the latter's neoclassical or orthodox institutionalism, and heterodox or critical institutionalism advanced by the old institutional economics as well as by economic sociology. Identifies and elaborates such divergences between these seemingly homologous varieties of institutionalism. Since institutionalist varieties and tendencies in both economics and sociology are considered, represents a contribution to an interdisciplinary treatment of social institutions, a treatment originally proposed by the old institutional economics of Veblen et al., the German historical school as well as by Weberian‐Durkheimian classical economic sociology.

Altruism, reciprocity and Islamic equity finance

2016 ◽  
Vol 9 (2) ◽  
pp. 205-221 ◽  
Author(s):  
Yasushi Suzuki ◽  
Mohammad Dulal Miah
Keyword(s):  
Institutional Economics ◽  
Transaction Cost Economics ◽  
Theoretical Background ◽  
Fund Raising ◽  
New Institutional Economics ◽  
Economic Behavior ◽  
Content Type ◽  
Protection Mechanisms ◽  
Equity Finance ◽  
The Right

Purpose This paper argues how Islamic altruism and reciprocity can enhance or drain the supply of Islamic equity finance. The paper also analyzes the feasibility of Islamic equity finance through the lens of new institutional economics (NIE) and transaction cost economics (TCE). Design/methodology/approach One of the salient contributions by NIE is to support the proposition that effective contracting depends greatly on institutions in terms of “rules that constrain economic behavior”, including informal or intangible institutions, such as religion, culture and customary practices. This paper draws on the theoretical contributions of the NIE and TCE and applies some of these contributions to an analysis of general altruism and reciprocity in Islamic economies. Findings It is said that solutions based on the Islamic injunctions (collectively termed as spiritual quotient) could serve to mitigate agency risks. However, in theory, the Muslim principal (particularly fund providers) is exposed to higher agency risk unless appropriate rules of protecting the right of the principal (or of punishing the agent when its opportunistic behavior is revealed) are devised, because the Muslim fund providers have the divine obligation to share risks in enterprise under the profit-loss sharing (PLS) scheme as well as to share a portion of income with the poor or those entrepreneurs who face difficulties in fund-raising. Originality/value Many scholars refer to the lack of the “formal” institutions that hinder the sound development of Islamic venture capital (VC). This paper contributes to shedding an analytical light on the unique feature of the Muslims’ “informal” constraints which make them hesitate to invest in Islamic VC. To develop the Islamic VC market, this paper provides a theoretical background to suggest how important it would be for the national financial system to devise some tangible provisions by installing enterprise-friendly regulations as well as adequate incentive and protection mechanisms consistent with Islamic principles.

scholarly journals What Factors Constitute Structures of Clustering Creative Industries? Incorporating New Institutional Economics and New Economic Sociology into A Conceptual Framework

2012 ◽  
Vol 14 (3) ◽  
pp. 213
Author(s):  
Poppy Ismalina
Keyword(s):  
Conceptual Framework ◽  
Economic Sociology ◽  
Institutional Economics ◽  
Local Development ◽  
Industrial Clusters ◽  
New Institutional Economics ◽  
Creative Industries ◽  
Institutional Practices ◽  
Economic Context ◽  
Theoretical Perspectives

Creative industries tend to cluster in specific places and the reasons for this phenomenon can be a multiplicity of elements linked mainly to culture, creativity, innovation and local development. In the international literature, it is pretty well recognized that creativity is frequently characterized by the agglomeration of firms so that creative industries are not homogeneously distributed across the territory but they are concentrated in the space. Three theories are becoming the dominant theoretical perspectives in agglomeration economies theory and they are increasingly being applied in industrial clusters analysis to study the effect of clustering industries. The theories are Marshall’s theoretical principles of localization economies, Schmitz’s collective efficiency and Porter’s five-diamond approach. However, those have adequately theorized neither the institutionalization process through which change takes place nor the socio-economic context of the institutional formations of clustering creative industries. This text begins by reviewing three main theories to more fully articulate institutionalization processes of an economic institution. Specifically, this paper incorporates new institutional economics (NIE) and new economic sociology (NES) to explain the processes associated with creating institutional practices within clustering creative industries. Both streams of institutional theory constitute that economic organizations are socially constructed. Next, this text proposes the framework that depicts the socio-economic context better and more directly addresses the dynamics of enacting, embedding and changing organizational features and processes within clustering creative industries. Some pertinent definitions are offered to be used in a conceptual framework of research about how economic institutions like clustering creative industries constitute their structures.    

scholarly journals Basic theories of modern institutionalism

2021 ◽  
Vol 94 ◽  
pp. 03001
Author(s):  
Ayna Salamova
Keyword(s):  
Economic Analysis ◽  
Institutional Economics ◽  
New Institutionalism ◽  
New Institutional Economics ◽  
Economic Thought ◽  
Psychological Problems ◽  
Historical School ◽  
Independent Direction ◽  
Theoretical Foundations

Institutionalism went through a difficult historical path of its development, went through several stages, each of which was accompanied by the renewal of methodology and theoretical foundations. Consistently at each stage, a corresponding independent direction arose: old institutionalism, new institutionalism (new institutional economics) and neoinstitutionalism (neoinstitutional economics). Modern institutionalism is a qualitatively new direction of economic thought, based on the theoretical principles of economic analysis of the neoclassical school in terms of identifying trends in the development of the economy, as well as the methodological tools of the German historical school in the approach to the study of socio-psychological problems of the development of society.

The Darwinian dynamic of sexual selection that Thorstein Veblen missed and its relevance to institutional economics

2018 ◽  
Vol 15 (1) ◽  
pp. 49-72 ◽  
Author(s):  
JON D. WISMAN
Keyword(s):  
Sexual Selection ◽  
Social Science ◽  
Social Status ◽  
Human Behavior ◽  
Driving Force ◽  
Institutional Economics ◽  
Social Institutions ◽  
Conspicuous Consumption ◽  
Social Conditions ◽  
Thorstein Veblen

AbstractThorstein Veblen was a pioneer in recognizing the necessity of grounding social science in Darwinian biology and exploring how evolving institutions channel biological proclivities. He especially focused upon how capitalism's social institutions guided the innate need for social status into conspicuous consumption. But why do humans seek status? Surprisingly, Veblen did not pick up on Darwin's concept of sexual selection and recognize it as the driving force behind behavior intended to favorably impress others. This article adds the Darwinian depth that Veblen missed to his understanding of the biologically driven quest for status and its channeling by social institutions. It then explores the turn of most institutionalists away from Veblen's focus on innate behavioral drives in favor of viewing human behavior as more exclusively determined by social conditions. It concludes with reflections on the implications of sexual selection and biological grounding more generally for a theory of institutional economics.

scholarly journals Zum Programm einer kritischen Sozialwissenschaft−Empirie und Theorie

1979 ◽  
Vol 1 (1) ◽  
pp. 1-29 ◽  
Author(s):  
Michael Baurmann ◽  
Anton Leist ◽  
Dieter Mans
Keyword(s):  
Social Sciences ◽  
Social Science ◽  
Social Research ◽  
Social Institutions ◽  
Empirical Social Science ◽  
Critical Social Science ◽  
Just Society ◽  
Further Development ◽  
Critical Social ◽  
Critique Of Ideology

AbstractThe article argues for a synthesis between analytical philosophy and social sciences as relevant and necessary. The motivation and framework of such a synthesis is outlined on the basis of a critical social science. The authors illuminate such a perspective negatively in a critique of empirical and theoretical sociology, then positively in a clarification of the critical standpoint. Four theses, two under each-aspect, are defended:1. Concerning empirical social sciencesNeither the quantitative nor the qualitative paradigm of empirical social science is able to put forward adequate methods for social research. Instead, the development of reconstructive methods is proposed to combine the advantages and eliminate the disadvantages of the quantitative and qualitative paradigms.2. Concerning theoretical sociologyMacrosociological theories tend to resist empirical corrobation. Pure theoretical and philosophical justification abounds instead. In this situation the tools of analytic theory of science are proposed in order to clarify the necessary steps towards a further development of theories, which can be empirically tested.3. Concerning the critique of societyA critical social science must incorporate a theory of a just society in order to analyse social institutions in a normative way. In this context an ethical realist approach is offered which tries to fulfill two conditions for sociologically relevant normative reasonings: satisfaction of individual interests and the rational consensus of all persons concerned.4. Concerning critique of ideologyThe tools of analytic philosophy can be given new application by combining them with an analysis of interests under the title of critique of ideology.

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