Lin Ostrom’s Contribution to Economics: A Personal Evaluation

Lin Ostrom’s work constitutes a great step forward in the analysis of social governance. Instead of focusing on the technical characteristics of goods she studies what types of institutions have emerged and how they affect individual motivation and behavior in public goods and commons situations. Her approach represents a careful analysis of institutions often emerging from below. Unorthodox impacts of institutions on individual motivation and behavior as well as the possible creation of new institutions must be taken into account. The constitution must ensure that the involved individuals can establish adequate institutions regardless of possible opposition by politicians and bureaucrats.