The field of Economics of Institutions is crucial because it moves beyond the purely technical models of traditional economics to study how formal rules (like laws, constitutions, and property rights) and informal constraints (like customs, norms, and culture) shape economic performance and development. These institutions, by determining the rules of the game, structure the incentives faced by individuals and firms, profoundly influencing behavior in areas such as investment, innovation, and trade.
- Teacher: Annie Joseph