Overview
Institutional economics is a vital field that examines how institutions and incentives shape economic behavior. By understanding the rules, norms, and organizations that govern economic activities, we can better predict and influence economic outcomes. This approach emphasizes the importance of tran...
Key Terms
Example: Legal systems, regulations.
Example: Tax breaks encourage investment.
Example: Fees for legal contracts.
Example: Ownership of land.
Example: Competitive markets lead to efficient pricing.
Example: Infrastructure investment in developing countries.
Related Topics
Key Concepts
InstitutionsIncentivesTransaction CostsProperty Rights