INSTITUTIONAL EQUILIBRIUM. WHAT IS IT ABOUT AND WHAT IS ITS ROLE IN THE ECONOMY?
INSTITUTIONAL EQUILIBRIUM. WHAT IS IT ABOUT AND WHAT IS ITS ROLE IN THE ECONOMY?

Summary/Abstract: The concept of economic equilibrium is amongst the most important in economics. Of particular importance in economic sciences is the theory of general economic equilibrium. The main subject of consideration in this paper is a critical appraisal of the way in which that concept of economic equilibrium is developed in mainstream economics. This dominant approach in economics is confronted with idea of institutional equilibrium based on achievements of American institutionalism and new institutional economics. The theory of institutional equilibrium proposed by M. Aoki has an important place in this new approach. Institutional equilibrium is a kind of “equilibrium of long durations”. This concept explains fundamentals of the duration and development of an economy despite the existence of permanent market disequilibrium.

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