The Approach of Institutional Economics

Thorstein Veblen proposed that economics should be reconstructed as a “post-Darwinian” science. One of the aims of this essay is to explore the meaning of this statement. A second aim is to show that American institutional economics had largely abandoned this commitment to Darwinian principles by the time of Veblen’s death. In this context, the appearance of the book by David Hamilton (1953)—especially with its original title of Newtonian Classicism and Darwinian Institutionalism—is all the more remarkable. It reestablished the Veblenian links between Darwinism and institutionalism that most institutionalists had abandoned. The first part of this essay summarizes the philosophical and analytical meaning of…