Institutional and Organizational Analysis: Concepts and Applications

Eric Alston · Lee J. Alston · Bernardo Mueller · Tomas Nonnenmacher

Aug. 2018 · Cambridge University Press

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What explains the great variability in economic growth and political development across countries? Institutional and organizational analysis has developed since the 1970s into a powerful toolkit, which argues that institutions and norms rather than geography, culture, or technology are the primary causes of sustainable development. Institutions are rules that recognized authorities create and enforce. Norms are rules created by long-standing patterns of behavior, shared by people in a society or organization. They combine to play a role in all organizations, including governments, firms, churches, universities, gangs, and even families. This introduction to the concepts and applications of institutional and organizational analysis uses economic history, economics, law, and political science to inform its theoretical framework. Institutional and organizational analysis becomes the basis to show why the economic and political performance of countries worldwide have not converged, and reveals the lessons to be learned from it for business, law, and public policy.

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Eric Alston is a Scholar in Residence in the Finance Division and the Faculty Director of the Hernando de Soto Capital Markets Program in the Leeds School of Business at the University of Colorado Boulder. He also serves as a Research Associate with the Comparative Constitutions Project.

Lee J. Alston is the Ostrom Chair, Professor of Economics and Law, and Director of the Ostrom Workshop at Indiana University. He is a Research Associate at the NBER. Alston is Past-President of the International Society for New Institutional Economics, and the Economic History Association.

Bernardo Mueller is a lecturer at the Department of Economics at the University of Brasília. He is the co-author of Brazil in Transition: Beliefs, Leadership, and Institutional Change (2016), along with Lee J. Alston, Marcus André Melo, and Carlos Pereira.

Tomas Nonnenmacher is the Patricia Bush Tippie Chair of Economics and the Co-director of the Center for Business and Economics at Allegheny College, Pennsylvania. He is an affiliated faculty member at the Ostrom Workshop.

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