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New Institutional Economics

48 Pages Posted: 9 Sep 1998  

Peter G. Klein

Baylor University, Department of Entrepreneurship; Norwegian School of Economics, Department of Strategy and Management; Mises Institute

Multiple version iconThere are 2 versions of this paper

Date Written: July 1998


This essay surveys the new institutional economics, a rapidly growing literature combining economics, law, organization theory, political science, sociology, and anthropology to understand social, political, and commercial institutions. This literature tries to explain what institutions are, how they arise, what purposes they serve, how they change, and how they may be reformed. Following convention, I distinguish between the institutional environment (the background constraints, or rules of the game that guide individuals' behavior) and institutional arrangements (specific guidelines designed by trading partners to facilitate particular exchanges). In both cases, the discussion here focuses on applications, evidence, and policy implications.

JEL Classification: D23, D72, L22, L42, O17

Suggested Citation

Klein, Peter G., New Institutional Economics (July 1998). Available at SSRN: or

Peter G. Klein (Contact Author)

Baylor University, Department of Entrepreneurship ( email )

Waco, TX 76798
United States
254-710-4903 (Phone)

Norwegian School of Economics, Department of Strategy and Management ( email )

Breiviksveien 40
N-5045 Bergen

Mises Institute ( email )

Auburn, AL
United States

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