Chaos Theory and Institutional Economics: Metaphor or Model?
Author(s)
Van Staveren, Irene
Abstract
The Veblenian tradition of institutional economics is, unlike neoclassical, Marxist, or new institutional economics, firmly embedded in social, cultural, and political life. The tradition lends itself to rich descriptive analyses, recognizing the interplay of economic behavior with social, cultural, moral, and political domains of life and its institutions. This old institutional economics therefore is difficult to catch in mathematical terms, let alone in linear algebra. However, with recent developments in the natural sciences and mathematics (quantum mechanics, systems theory), it might become relevant to consider anew whether mathematical relationships could illustrate and support the theoretical endeavors of institutional economics. This paper intends to provide some suggestions of how institutional economics might profit from mathematical metaphors or even models derived from chaos theory. The author addresses institutions such as gender and various roles within institutional economics.
