Growth and institutions in Paolo Sylos Labini's thought

Abstract

According to Paolo Sylos Labini (1920-2005), it is vital for an economist to be acutely conscious of the responsibility to study society for the sake of promoting progress—the economic, social and civil progress of society—and not for personal interest. In his last book, Ahi serva Italia (2006), Sylos Labini spoke as a civic-minded economist to all those Italians who refuse to understand that respect for the rules is an absolute requirement for a market economy, and, in particular, that a market economy needs rules to defend the community against the unbridled expansion of positions of power. Within this analytical framework, our paper aims to discuss the role of institutions along different lines: the role of the market in the process of economic growth, public intervention in the economy and the process of institutional innovations.Paolo Sylos Labini, growth, institutions, regulation, innovations