“An explanation of the "institutional approach" to economic theory is a plea for a particular kind of theory. It is possible to come upon the same object from different angles; but more often those who take different routes chance upon different things. The "institutional approach" doubtless has some importance because it is a happy way to acceptable truth, but its significance lies in its being the only way to the right sort of theory. An appeal for "institutional economics" implies no attack upon the truth or value of other bodies of economic thought, but it is a denial of the claims of other systems of thought to be "economic theory." This, however, is no pointless struggle in method to be carried on by breaking syllogisms over concepts and by engaging in polemics over niceties in statement. On the contrary, it involves the very nature of the problems which the theorist should set himself; its real issue is over what economic theory is all about.”

— Walton Hale Hamilton

Source: The Institutional Approach to Economic Theory, 1919, p. 309: Introduction

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Walton Hale Hamilton 5

Yale Law Professor 1881–1958

Walton Hale Hamilton (1881–1958) Yale Law Professor

After all control and institutions and processes are immediate things. They can all be translated into terms of human conduct...
Source: The Institutional Approach to Economic Theory, 1919, p. 311-6

“While economic theory in general may be defined as the theory of how an economic condition or an economic development is determined within an institutional framework, the welfare theory deals with how to judge whether one condition can be said to be better in some way than another and whether it is possible, by altering the institutional framework, to achieve a better condition than the present one.”

John Hicks (1904–1989) British economist

Kenneth Arrow and John Hicks (1972) From Nobel Lectures, Economics 1969-1980, Editor Assar Lindbeck, World Scientific Publishing Co., Singapore, 1992 ( online http://www.nobelprize.org/nobel_prizes/economics/laureates/1972/presentation-speech.html)

Kenneth Arrow (1921–2017) American economist

Arrow and Hicks (1972) From Nobel Lectures, Economics 1969-1980, Editor Assar Lindbeck, World Scientific Publishing Co., Singapore, 1992 ( online http://www.nobelprize.org/nobel_prizes/economics/laureates/1972/presentation-speech.html)
1970s-1980s

“That the human mind has a certain order of possible progress, in which some things must precede others, an order which governments and public instructors can modify to some, but not to an unlimited extent: That all questions of political institutions are relative, not absolute, and that different stages of human progress not only will have, but ought to have, different institutions: That government is always either in the hands, or passing into the hands, of whatever is the strongest power in society, and that what this power is, does not depend on institutions, but institutions on it: That any general theory or philosophy of politics supposes a previous theory of human progress, and that this is the same thing with a philosophy of history.”

John Stuart Mill book Autobiography

Source: Autobiography (1873)
Source: https://archive.org/details/autobiography01mill/page/162/mode/1up p. 162

“The view that now pervades much public policy economics implicitly presents the relevant choice as between an ideal norm and an existing "imperfect" institutional arrangement. This nirvana approach differs considerably from a comparative institution approach in which the relevant choice is between alternative real institutional arrangements.”

Harold Demsetz (1930–2019) American economist

Cited in: Eggertsson (1990; 22)
"Information and Efficiency: Another Viewpoint." (1969)

“The vast differences in power contributed to faulty social theories of these differences that are still with us today. When a society is economically dominant, it is easy for its members to assume that such dominance reflects a deeper superiority--whether religious, racial, genetic, cultural, or institutional--rather than an accident of timing or geography.”

Jeffrey D. Sachs book The End of Poverty

The End of Poverty" The End of Poverty, 2005

“The ultimate meaning of the systems approach... lies in the creation of a theory of deception and in a fuller understanding of the ways in which the human being can be deceived about (her) his world, and in the interaction between these different viewpoints.”

C. West Churchman (1913–2004) American philosopher and systems scientist

Variant: The ultimate meaning of the systems approach... lies in the creation of a theory of deception and in a fuller understanding of the ways in which the human being can be deceived about (her) his world, and in the interaction between these different viewpoints.
Source: 1960s - 1970s, The Systems Approach (1968), p. 229; cited in Charles Smith (2007) "Deception Meets Enlightenment: From a Viable Theory of Deception to a Quirk About Humanity's Potential". In: World Futures Vol 63, p. 42

“[Neoinstitutional Economics…] theory has made an indispensable contribution in recent times to advances of understanding in this area. But it seems to me that in the economics of institutions theory is now outstripping empirical research to an excessive extent. No doubt the same could be said of other fields in economics, but there is a particular point about this one. Theoretical modelling may or may not be more difficult in this field than in others, but empirical work is confronted by a special difficulty. Because economic institutions are complex, they do not lend themselves easily to quantitative measurement. Even in the respects in which they do, the data very often are not routinely collected by national statistical offices. As a result, the statistical approach which has become the bread and butter of applied economics is not straightforwardly applicable. Examples of it do exist, the literature on the economics of slavery being perhaps the most fully developed - not surprisingly because slavery is an institution that is sharply defined. But to a large extent the empirical literature has consisted of case-studies which are interesting but not necessarily representative, together with a certain amount on legal court cases, which are almost certainly not representative. Is this the best we can do? There is a challenge here on the empirical side to economists to see what is the best way forward.”

R. C. O. Matthews (1927–2010) British economist

“We look upon economic theory as a sequence of conceptual models that seek to express in simplified form different aspects of an always more complicated reality.”

Tjalling Koopmans (1910–1985) Dutch American economist

Source: Three Essays (1957), p. 142

“The modern doctrines of diversity and multiculturalism are a kind of homogenizing totalitarianism. Its acolytes want every institution to be filled with people who look different but think alike. What our society needs is not more “diversity” of this sort but more variety. Different communities and institutions need to be able live differently, because it is only with this kind of variety that a diverse people can find places where they all feel at home and where they can all find a kind of meaning that suits them as individuals.”

Jonah Goldberg (1969) American political writer and pundit

2010s, 2018, A Free People Must Be Virtuous (2018)

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