Institutions as Knowledge Capital: Ludwig M. Lachmann’s Interpretative Institutionalism

Foss, Nicolai and Garzarelli, Giampaolo (2006): Institutions as Knowledge Capital: Ludwig M. Lachmann’s Interpretative Institutionalism.

Abstract

The paper revisits the socioeconomic theory of the Austrian School economist Ludwig M. Lachmann. By showing that the common claim that Lachmann’s idiosyncratic (read: eclectic and multidisciplinary) approach to economics entails nihilism is unfounded, it reaches the following conclusions. (1) Lachmann held a sophisticated institutional position to economics that anticipated developments in contemporary new institutional economics. (2) Lachmann’s sociological and economic reading of institutions offers insights for the problem of coordination. (3) Lachmann extends contemporary new institutional theory without simultaneously denying the policy approach of comparative institutional analysis.

• Item Type: MPRA Paper
• Language: English
• Keywords: Comparative institutional analysis; coordination; expectations; institutional evolution; interpretative institutionalism
• Subjects: D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D80 - General; B - History of Economic Thought, Methodology, and Heterodox Approaches > B5 - Current Heterodox Approaches > B52 - Institutional ; Evolutionary; B - History of Economic Thought, Methodology, and Heterodox Approaches > B5 - Current Heterodox Approaches > B53 - Austrian; B - History of Economic Thought, Methodology, and Heterodox Approaches > B3 - History of Economic Thought: Individuals > B31 - Individuals