Breaking the Path of Institutional Development: Alternatives to the New Determinism in Political Economy

The concept of path dependence is being used in highly deterministic ways in neo-institutionalist analysis, so that studies using this framework have dif.culty in accounting for, or predicting, change. However, the original Polya urn model from which pathdependence theory draws predicts that alternative paths will be possible. It can then be argued that actors will be able to use these when they perceive a need to change. This article seeks to capture this possibility through accommodating a Bayesian parametric decision-maker interacting with an environment. This makes it possible to examine how change may involve such processes as: the use of past or redundant institutional repertoires; transfer of experience across action spaces; or from other agents, through networks of structured relationships; the emergence of perceived ‘one best’ solutions. This approach points to the need to change how typologies are used in neo-institutionalist research, so that those features of cases that do not .t the pre-conceived framework of a type are not disregarded as ‘noise’, but properly evaluated as potential resources for change.

Colin Crouch and Henry Farrell (2004), “Breaking the Path of Institutional Development: Alternatives to the New Determinism in Political Economy,” Rationality and Society, 16, 1:5-43 (2004). Earlier version available as a Max-Planck Discussion Paper, Max-Planck Institute for the Study of Society, Cologne, Germany.

Access the full article here

Other Writing:

Academic Article

Brexit, Voice and Loyalty: Rethinking Electoral Politics in an Age of Interdependence – with Abraham Newman

In the wake of the United Kingdom’s decision to leave the European Union, known as Brexit, scholars of international affairs have a chance to reflect on what this unanticipated event means for global politics. Many scholars have started applying standard political economy models based on the distributional consequences of trade or the sociotropic sources of ...
Read Article
Essay

The Panama Papers and Thomas Piketty: How the Leak May Transform Politics

The Panama Papers—the massive collection of leaked documents from Mossack Fonseca, a Panamanian law firm that helps set up offshore shell corporations—have already had political consequences. Iceland’s prime minister, Sigmundur David Gunnlaugsson, resigned after the leak revealed that he had partly owned an offshore firm. David Cameron, the British prime minister, is facing criticism over ...
Read Article