New Institutional Economics incorporates a theory of institutions - laws,
rules, customs, and norms - into economics. It builds on, modifies, and
extends neoclassical theory. It retains and builds on the fundamental
assumption of scarcity and hence competition - the basis of the choice
theoretic approach that underlies microeconomics.

It has developed as a movement within the social sciences that unites
theoretical and empirical research examining the role of institutions in
furthering or preventing economic growth. It includes work in transaction
costs, political economy, property rights, hierarchy and organization, and
public choice.  It involves work in political science, law, sociology,
anthropology, and other social sciences.

 ALSO SEE
 What's New
 Glossaries for New Institutional Economics
     Glossary in English
     Glossary in Arabic
     Glossary in Simplified Chinese
     Glossary in Traditional Chinese

 New Institutional Economics Terms
      in Many Languages

 Reading List - Introductory
 Reading List - North & Nye 2003

 Links and Resources