Institutionalism and Liberalism

Obregon, Carlos (2023): Institutionalism and Liberalism. Published in:

Abstract

In social sciences there has been a long debate between the defenders of institutionalism and those of liberalism. The debate has centered around the relationship that exists between the individual (agent) and the social institutions (social structure). In general, liberalism defends that the individual ́s (agent ́s) preferences, choices, and behavior define the social institutions (social structure); while institutionalism argues that the social institutions define the individual ́s preferences, choices, and behavior. Some authors have attempted to solve the debate by proposing a dual feedback loop between the individual and the social institution, in which both mutually define each other. But the solution is not as simple as that. In this book, it is argued that liberalism is fully compatible with institutionalism, although only by following a pragmatic-scientific conception of both. It is ascertained that liberalism is an institution, that was born in a particular historical period of the Western societies. Therefore, since liberalism itself is an institution, it follows that liberalism is compatible with institutionalism. It is argued in here that although it is in general true that institutionalism defends that individual preferences, choices, and behaviors are defined by social institutions; once the society grants the individuals political and economic freedom, these individual preferences, choices, and behaviors become critical in defining the dynamics of the institutional arrangement in question – as liberalism has pointed out.

• Item Type: MPRA Paper
• Language: English
• Keywords: institutionalism, liberalism, individual, social institutions, social structure, preferences, choices, behavior, Western societies, society, political, politics, economic
• Subjects: A - General Economics and Teaching > A1 - General Economics > A10 - General; A - General Economics and Teaching > A1 - General Economics > A12 - Relation of Economics to Other Disciplines; A - General Economics and Teaching > A1 - General Economics > A13 - Relation of Economics to Social Values; A - General Economics and Teaching > A1 - General Economics > A14 - Sociology of Economics; B - History of Economic Thought, Methodology, and Heterodox Approaches > B0 - General > B00 - General; B - History of Economic Thought, Methodology, and Heterodox Approaches > B3 - History of Economic Thought: Individuals > B30 - General; B - History of Economic Thought, Methodology, and Heterodox Approaches > B3 - History of Economic Thought: Individuals > B31 - Individuals; G - Financial Economics > G0 - General > G00 - General; G - Financial Economics > G0 - General > G01 - Financial Crises; G - Financial Economics > G0 - General > G02 - Behavioral Finance: Underlying Principles; G - Financial Economics > G2 - Financial Institutions and Services > G20 - General; G - Financial Economics > G2 - Financial Institutions and Services > G28 - Government Policy and Regulation; G - Financial Economics > G2 - Financial Institutions and Services > G29 - Other; H - Public Economics > H0 - General > H00 - General; N - Economic History > N0 - General > N00 - General; P - Economic Systems > P0 - General > P00 - General; P - Economic Systems > P2 - Socialist Systems and Transitional Economies > P20 - General; P - Economic Systems > P2 - Socialist Systems and Transitional Economies > P25 - Urban, Rural, and Regional Economics; P - Economic Systems > P2 - Socialist Systems and Transitional Economies > P26 - Political Economy ; Property Rights; P - Economic Systems > P4 - Other Economic Systems > P40 - General; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R0 - General > R00 - General

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