The Normative Foundations of Institutions and Institutional Change
نویسنده
چکیده
This paper presents a framework for the integration of values (internalized norms) in a positive analysis of institutions and institutional change. Informal, norm-based institutions and formal – legal, economic, and political – institutions are co-determined as an equilibrium in the relations among economic and political actors. The paper discusses various ways that formal institutions influence values and values influence formal institutions and their dynamic. This discussion draws attention to the role of formal institutions in mitigating norm-based market failures and the role of legitimacy norms in determining formal legal and economic institutions. Moral crises (the undermining of an institution’s normative support) cause changes in formal political institutions.
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