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The Economy as an Open System: An Institutionalist Framework for Economic Development

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Institutional Analysis and Praxis

Abstract

The main purpose of this chapter is to set the stage for the rest of this volume by describing the economic system in a way consistent with original institutionalist principles, principles that prescribe an open system view of economies. The chapter emphasizes the ways in which technology, nature, and culture transact with the economic process. From this view the terms sustainability and development take on broader meanings. Strict sustainability requires adherence not only to environmental criteria but also to technological and social criteria. Development implies that the socioeconomic system changes in the direction of improved adherence to social criteria broadly defined.

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Notes

  1. 1.

    The details and philosophical underpinnings of open systems analysis are discussed in Kapp (1976), Berger and Elsner (2007), Mearman (2006), Hayden (2006), Hodgson (2004), and elsewhere.

  2. 2.

    Inspiration for this figure comes from Bryant (1980).

  3. 3.

    Culture is more malleable when viewed over generations of individuals.

  4. 4.

    Details on this dichotomy of values are discussed in the following chapter by James Sturgeon.

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Author information

Authors and Affiliations

  1. Department of Economics and International Business, New Mexico State University, Las Cruces, NM, USA

    Richard V. Adkisson

Authors
  1. Richard V. Adkisson
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Editor information

Editors and Affiliations

  1. St. Michael's College, Colchester, 05439, U.S.A.

    Tara Natarajan

  2. FB Wirtschaftsfwissenschaften, Universität Bremen, Hochschulring 4, Bremen, 28359, Germany

    Wolfram Elsner

  3. Wartburg College, Wartburg Blvd. 100, Waverly, 50677, U.S.A.

    Scott Fullwiler

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Adkisson, R.V. (2009). The Economy as an Open System: An Institutionalist Framework for Economic Development. In: Natarajan, T., Elsner, W., Fullwiler, S. (eds) Institutional Analysis and Praxis. Springer, New York, NY. https://doi.org/10.1007/978-0-387-88741-8_2

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