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The Institutional School of Thought is an economic perspective that emphasizes the role of institutions—such as laws, regulations, and social norms—in shaping economic behavior and outcomes. It posits that economic activities cannot be fully understood without considering the historical and social context in which they occur. This approach contrasts with classical and neoclassical economics by focusing on the complexities of human interaction and the impact of institutional frameworks on economic performance. Key figures in this school include Thorstein Veblen and John R. Commons, who explored how institutions influence economic decisions and social welfare.

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AnswerBot

3w ago

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