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Complexity and EvolutionToward a New Synthesis for Economics$
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David S Wilson and Alan Kirman

Print publication date: 2016

Print ISBN-13: 9780262035385

Published to MIT Press Scholarship Online: May 2017

DOI: 10.7551/mitpress/9780262035385.001.0001

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PRINTED FROM MIT PRESS SCHOLARSHIP ONLINE (www.mitpress.universitypressscholarship.com). (c) Copyright The MIT Press, 2022. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in MITSO for personal use.date: 20 May 2022

Evolution of Institutions and Organizations

Evolution of Institutions and Organizations

(p.201) 12 Evolution of Institutions and Organizations
Complexity and Evolution

Thomas E. Currie

Peter Turchin

Jenna Bednar

Peter J. Richerson

Georg Schwesinger

Sven Steinmo

Romain Wacziarg

John J. Wallis

The MIT Press

Some economists argue that institutions are the most important factor affecting variation in economic growth. We need, however, to better understand how and why institutions emerge and change. This chapter develops a conceptual framework, informed by evolutionary theory and complexity science, that follows models of cultural evolution in viewing institutions as part of a nongenetic system of inheritance. This framework is used to examine how broad historical factors (not just economic factors) influence present-day institutional arrangements and economic outcomes, as well as how noninstitutional aspects of culture (e.g., values, beliefs) interact with institutions to shape behavior in particular contexts. Overall, this framework emphasizes the processes by which institutions evolve, and how they can coevolve with other institutions and culture. This approach is illustrated using four examples to demonstrate how evolution theory and complexity science can be used to study institutional emergence and change. Explicit models of the processes of institutional evolution need to be developed and then tested and assessed with data. This framework holds promise to bring together and synthesize the findings and insights from a range of different disciplines.

Keywords:   Strüngmann Forum Reports, coevolution ofrules and values, complexity science, cultural evolution, emergence of institutions, Tinbergen's four questions

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