To analyze institutional dynamics, it is first necessary to determine when change has occurred, when not, and the nature and magnitude of change. If social institutions are defined in terms of rules, then a change of rules forms the core of institutional change. A number of complications arise from the difference between formal and informal institutions. Rules can remain static, but be interpreted in new ways. Rules can be ‘transplanted’ from one social location to another, and because of the change in context their implementation changes. Or rules may continue but ‘exceptions’ may be granted to them. Drawing on sociological and socio-legal research on rule-change, I discuss how formal/informal differences affect institutional change, and illustrate these with examples drawn from finance, development, and law.

Last modified

• 01/03/2019

Creator

• Bruce Carruthers

DOI

• https://doi.org/10.21985/N2ZX8J

Alternate Identifier

• 12-004

Keyword

• institutional dynamics
• change
• buffett

Date created

• 2012

Resource type

• Research Paper

Rights statement

• In Copyright