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TERRA ECONOMICUS

What is OIE needed for, if there is NIE?

TERRA ECONOMICUS, , Vol. 12 (no. 4),
p. 79-90

Over the last decades economic theorists have shown an increasing interest in the issues related to methodological differences between OIE and NIE. The discussion gets more complicated and popular, having attracted institutionalists of both camps. Extended literature exists on the historical events that caused dominance of neoclassical and neo-institutional economics in the University syllabuses, original institutional economic being neglected at that. In this article, an attempt is made to continue the discussion by reminding the reader of the general differences between the original institutionalist methodology and the neo-institutional one. Then, we proceed by explaining the concept of a transaction as the basic unit of economic activity, revealing adverse consequences of its misunderstanding in the institutional analysis.


Keywords: Old (Original) Institutional Economics (OIE); New Institutional Economics (NIE); methodology of institutional economics; transaction analysis; institutions

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Founder: Southern Federal University
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