Toward a theory of induced institutional innovation

Vernon W. Ruttan, Yujiro Hayami
1984 Journal of Development Studies  
In this paper we elaborate a theory of institutional innovation in which changes in the demand fot institutional innovation are induced by changes in relative resource endowments and by technical change. We illustrate, from agricultural history, how changes in resource endowments and technical change have induced changes in private property rights and in the development of non-market institutions. We also consider the impact of advances in social science knowledge and of cultural endowments on
more » ... ural endowments on the supply of institutional change. In a final section we present the elements of a model of institutional innovation that maps the relationships among resource endowments, cultural endowments, technology, and institutions.
doi:10.1080/00220388408421914 fatcat:o6fcyentive5fecp2fb36kdprm