Growth and institutional changes: a historical evolution
ABSTRACT 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 econom...
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| Format: | Article |
| Language: | English |
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Editora 34
2021-03-01
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| Series: | Brazilian Journal of Political Economy |
| Subjects: | |
| Online Access: | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572021000200292&tlng=en |
| _version_ | 1818974894879145984 |
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| author | ALESSANDRO MORSELLI |
| author_facet | ALESSANDRO MORSELLI |
| author_sort | ALESSANDRO MORSELLI |
| collection | DOAJ |
| description | ABSTRACT 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. |
| first_indexed | 2024-12-20T15:47:19Z |
| format | Article |
| id | doaj.art-33ad239716b649649e0eb8539c10f1f3 |
| institution | Directory Open Access Journal |
| issn | 1809-4538 |
| language | English |
| last_indexed | 2024-12-20T15:47:19Z |
| publishDate | 2021-03-01 |
| publisher | Editora 34 |
| record_format | Article |
| series | Brazilian Journal of Political Economy |
| spelling | doaj.art-33ad239716b649649e0eb8539c10f1f32022-12-21T19:34:53ZengEditora 34Brazilian Journal of Political Economy1809-45382021-03-0141229231310.1590/0101-31572021-3133Growth and institutional changes: a historical evolutionALESSANDRO MORSELLIhttps://orcid.org/0000-0003-2474-1084ABSTRACT 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.http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572021000200292&tlng=enInstitutional changebeliefsgrowthuncertaintyinstitutionsrationalitygame theory |
| spellingShingle | ALESSANDRO MORSELLI Growth and institutional changes: a historical evolution Brazilian Journal of Political Economy Institutional change beliefs growth uncertainty institutions rationality game theory |
| title | Growth and institutional changes: a historical evolution |
| title_full | Growth and institutional changes: a historical evolution |
| title_fullStr | Growth and institutional changes: a historical evolution |
| title_full_unstemmed | Growth and institutional changes: a historical evolution |
| title_short | Growth and institutional changes: a historical evolution |
| title_sort | growth and institutional changes a historical evolution |
| topic | Institutional change beliefs growth uncertainty institutions rationality game theory |
| url | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572021000200292&tlng=en |
| work_keys_str_mv | AT alessandromorselli growthandinstitutionalchangesahistoricalevolution |