Abstract
This paper is a critical analysis of the potential for application of situational analysis principles to institutional economics. It may seem a little odd to write of the potential for application. The three related subjects of verstehen, ideal types and situational analysis date to debates between Menger and the German Historical School of the late nineteenth century, prior to Weber’s attempts at unifying scientific and historical analyses, and were developed further by Schutz (Craib 1992, Giddens 1976, 1977, Weber 1947). Interest in situational analysis has recently been re-invigorated by Langlois, who, in a series of papers, has developed an argument that situational analysis should be adopted as a methodological basis for institutional economics (Langlois 1986a, 1989; Langlois and Csontos 1993). Situational analysis necessarily involves a commitment by researchers to principles of verstehen and to forming ideal types of situation and agent. Verstehen and ideal types can be recovered in much economics research, but a commitment to situational analysis involves explicit consideration of these issues in forming theoretical propositions or explanations. The recoverability of principles of verstehen and forming ideal types of agent and situation from established economics theorizing is emphasised in Langlois and Csontos’s (Ibid) argument that institutional analysis unite, or at least clarify relations between, institutional economics and neoclassical economics. This paper includes historical analysis prior to discussing contemporary applications.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call