Institutional Analysis and Economic Policy

By Leathers, Charles G. | Journal of Economic Issues, September 2004 | Go to article overview
Save to active project

Institutional Analysis and Economic Policy


Leathers, Charles G., Journal of Economic Issues


Institutional Analysis and Economic Policy, edited by Marc R. Tool and Paul Dale Bush. Boston: Kluwer Academic Publishers. 2002. Cloth, ISBN 1402073089, $159.00. 598 pages.

To demonstrate that "[i]nstitutional economics is a policy-oriented science" (p. 2), Marc R. Tool and Paul Dale Bush asked seventeen leading institutional economists to address specific policy issues related to macroeconomic stabilization, equity in income distribution, health and welfare programs, concentration of economic power in the hands of multinational corporations, education reforms and employment in the new information economy, environmental protection, and globalization. Collectively, the essays reveal the policy goals that institutional economists advocate, provide examples of how institutional analyses can be applied to determine the nature of a variety of socio-economic problems, and identify policies for viable long-term solutions to those problems.

In chapter 1, Tool and Bush provide a substantial discourse on the foundational concepts of institutionalism. They explain that the analyses in the essays reflect the tradition that is rooted in the original American institutionalism of Thorstein Veblen and John R. Commons and has evolved (and continues to evolve) under the influence by economic scholars such as Wesley C. Mitchell, Clarence Ayres, John Kenneth Galbraith, John Maynard Keynes, Gunnar Myrdal, Karl Polanyi, and Hymann Minsky. Within that tradition, the essays reflect the institutionalist recognition that the complexity of economic performance and problems necessitates sophisticated analytical thinking that gives critical attention to theory, facts, and social values in the search for viable policies. Because there are eighteen essays that address specific policy issues, the topics and authors can only be briefly mentioned here.

In chapter 2, Phillip A. Klein develops a powerful Keynesian economics rationale for the use of fiscal policy in macroeconomic stabilization and demonstrates once again the compatibility between institutional economics and Keynesian macroeconomics. In chapter 3, L. Randall Wray provides an equally powerful assessment of the importance of monetary policy, critiquing the orthodox approaches and demonstrating the compatibility between institutionalism and Post Keynesian economics. In chapter 4, Peter S. Fisher develops a strong case for progressive income taxation based on equity considerations.

In chapter 5, Charles M. Clark presents an institutionalist argument for greater income equity through a basic income system that is universal in application. In chapter 6, Janice Peterson offers a highly informed assessment of welfare policy reform based on accomplishing the goals of reducing poverty and facilitating the participation of low-income families in the economic mainstream. Her analyses reveal that the changes under congressional consideration threaten to impose more hardships on welfare recipients. In chapter 7, Michael Keaney critiques the current U.S. health care system in making a case for universal health insurance. In chapter 8, L. Randall Wray returns to present a most intelligent and realistic analysis of the U.S. Social Security system. He refutes the claims of those who are attacking it as being in a crisis state and explains that it only requires progressive reform to remain strongly viable. In view of Alan Greenspan's February 2004 call for cuts in Social Security benefits to facilitate continuing Bush's minimal taxation of the wealthy and privileged, this essay could not be more timely or on target. Wray is the perfect candidate to replace Greenspan as chairman of the Federal Reserve Board!

In chapter 9, Edythe S. Miller offers a powerful and timely critique of the existing neoclassical beliefs that prevent effective policies to counter and contain the concentration and centralization of economic power by multinational corporations.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Institutional Analysis and Economic Policy
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.