institutionsshape
Institutionshape is a term used to describe the influence of social, political, and economic institutions on the behavior of individuals and organizations, and the way in which those behaviors in turn shape institutions. It encompasses both the existence of formal rules and the informal norms that guide action. The concept emphasizes that outcomes such as economic performance, social cohesion, and institutional capacity emerge from the interaction between rules, norms, and incentives rather than from any single factor.
Formal institutions include constitutions, laws, regulatory agencies, property rights, and contractual frameworks. Informal institutions include cultural
Path dependence plays a central role: historical choices create established paths that constrain future options. Shifts
Policy implications include designing institutions that align incentives with desired outcomes, strengthening rule of law and
Critiques note measurement challenges, the risk of assuming institutions alone explain outcomes, and the difficulty of