The paper "Institutional Economics vs Ecological Economics" is a wonderful example of a report on macro and microeconomics. One of the key strengths of institutional economics is that it makes the development of economic environment orderly. Institutional economics takes into account the influence of institutions on economic interactions by acknowledging the significance of social, political, legal, and political institutions in the performance of the economy (Coase 2000). This approach accentuates on policy goals, beliefs, learning, and understanding of human behavior and economic change (Hodgson 2000). Furthermore, institutional economics provides evidence-based premises revolving around law, morality, and experiences in economics thus promoting the development of economic environment in an orderly manner.
Miller (2003) observes that the strength of institutional economics is mainly based on the power of its ideas and principles. For instance, institutional economics provides invaluable insights into the influence of economic, social, and political institutions on economic performance. Moreover, institutional economics employs disciplines such as law, history, anthropology, political science, sociology, and other related fields to advance understanding of the impacts of economic policies and the influence of institutions on the economy.
This in turn makes the subject to be more applicable when it comes to assessing criteria that are essential in the making of public policy. Over the years, institutional economics has made substantial progress as it accentuates on institutions as avenues of economic performance. This notion has been increasingly accepted in mainstream research studies (Joskow 2008). Institutional economics enables the analysis of economic relationships in various social settings since it focuses on the fundamental premises required for exchange (Brousseau & Glachant 2008). It widens the spectrum of economics thus enabling economists to pay attention to their environment, non- market institutions, and other means of coordinating economic activities.
Theories on institutional economics also incorporate values, norms, factors of human behavior, rule, and policies in economic thus promoting fairness in the economic environment (Eggertsson 1990).
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