Skip to main content
Article thumbnail
Location of Repository

MACROECONOMICS FROM THE VIEWPOINT OF MODERN INSTITUTIONAL ECONOMICS

By Rudolf Richter

Abstract

Both Keynesians and modern institutional economists are critical of the “classical economists”. In being so, they employ similar micro foundations of the business behavior (the “institutional arrangements”) of individuals. Yet in contrast to Keynesians, the representatives of modern institutional economics incorporate the institutional framework into their analysis: For them, the linkage between “economy and politics” is likewise an object of economic analysis. This is, in particular, the central issue of the “new political economics”. The concept of the “institution as an equilibrium outcome of a game ” is applied in this literature- an approach, which leads to multiple equilibria. The Keynesian under-employment equilibrium may be interpreted in this manner. The present essay constitutes a plea to widen macroeconomic analysis and “new political economics” by utilizing the procedure of “analytic narratives” that has been successfully put to the test by economic historians

Year: 2009
OAI identifier: oai:CiteSeerX.psu:10.1.1.135.6018
Provided by: CiteSeerX
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • http://citeseerx.ist.psu.edu/v... (external link)
  • http://www.uni-saarland.de/fak... (external link)
  • Suggested articles


    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.