“Nor are the general laws of economics "institutional." They work in an institutional setting, and upon institutional material; institutions supply much of their content and furnish the machinery by which they work themselves out, more or less quickly and completely, in different actual situations. Institutions may determine the alternatives of choice and fix the limits of freedom of choice, but the general laws of choice among competing motives or goods are not institutional unless rational thinking and an objective world are institutions, an interpretation which would make the term meaningless. Economic activity consists in the use of certain resources by certain processes, to produce "wealth." The content of the concept wealth is largely institutional, and the resources available and processes known and used at any place and time for producing wealth are in a sense historical products; but there are general laws of production and consumption which hold good whatever specific things are thought of as wealth and whatever productive factors and processes in use.”

Source: "The limitations of scientific method in economics", 1924, p. 129 (2009 edition)

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Frank Knight13

American economist 1885–1972

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“The importance to economics of the study of institutions is no longer a controversial proposition, thanks in part to the scholarly literature generated by the new institutional economics movement. Institutions are more than organizations – property is an institution, but not an organization – but organizations are an important form of institution and will be the focus of my paper, as it is, to a considerable extent, of the new institutional economics.”

Richard A. Posner (1939) United States federal judge

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“The difficulty in defining a field for the so-called institutional economics is the uncertainty of meaning of an institution. Sometimes an institution seems to mean a framework of laws or natural rights within which individuals act like inmates. Sometimes it seems to mean the behavior of the inmates themselves. Sometimes anything additional to or critical of the classical or hedonic economics is deemed to be institutional. Sometimes anything that is "economic behavior" is institutional. Sometimes anything that is "dynamic" instead of "static," or a "process" instead of commodities, or activity instead of feelings, or mass action instead of individual action, or management instead of equilibrium, or control instead of laissez faire, seems to be institutional economics.”

John R. Commons (1862–1945) United States institutional economist and labor historian

Source: "Institutional Economics," 1931, p. 648

“Before attempting to determine the effect of institutions, it is necessary to consider the inherent circumstances, constraints, and impelling forces at work in the environment within which the institutional mechanisms function.”

Thomas Sowell (1930) American economist, social theorist, political philosopher and author

Source: 1980s–1990s, Knowledge and Decisions (1980; 1996), Ch. 2 : Decision-Making Processes

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“History does not merely unfold within the terrain mapped out by these institutions. It does not resolve itself into the evolution of contents, of men and situations, etc., while the principles of society remain eternally valid. … On the contrary, history is precisely the history of these institutions, of the changes they undergo as institutions which bring men together in societies. Such institutions start by controlling economic relations between men and go on to permeate all human relations”

György Lukács book History and Class Consciousness

and hence also man's relations with himself and with nature
Source: History and Class Consciousness (1968), pp. 47-48

“A total institution may be defined as a place of residence and work where a large number of like-situated individuals, cut off from the wider society for an appreciable period of time, together lead an enclosed, formally administered round of life. Prisons serve as a clear example, providing we appreciate that what is prison-like about prisons is found in institutions whose members have broken no laws. This volume deals with total institutions in general and one example, mental hospitals, in particular.”

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Source: 1950s-1960s, Asylums, 1961, p. xxi; lead paragraph

“Our institutions are no good any more: on that there is universal agreement. However, it is not their fault but ours. Once we have lost all the instincts out of which institutions grow, we lose institutions altogether because we are no longer good for them.”

Friedrich Nietzsche book Twilight of the Idols

Twilight of the Idols (1888)

“If a theory of justice is to guide reasoned choice of policies, strategies or institutions, then the identification of fully just social arrangements is neither necessary nor sufficient.”

Amartya Sen book The Idea of Justice

Source: The Idea of Justice

“They (social costs) are damages or diseconomies sustained by the economy in general, which under different institutional conditions could be avoided. [... ] if these costs were inevitable under any kind of institutional arrangement they would not really present a special theoretical problem. [... ] to reveal their origin, the study of social costs must always be an institutional analysis. Such an analysis raises inevitably the question of institutional reform and policy.”

Karl William Kapp (1910–1976) American economist

Source: Social Costs of Business Enterprise, 1963, p. 186 cited in: Sebastian Berger and Mathew Forstater (2007) "Toward a Political Institutionalist Economics: Kapp’s Social Costs, Lowe’s Instrumental Analysis, and the European Institutionalist Approach to Environmental Policy". In: Journal of Economic Issues. Vol.XLI, No.2, June 2007. p. 539

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Frank Knight13

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