Theory of Institutional Changes: Creation, Possibilities, Limitations

The paper considers the problem of formation and development of the theory of institutional changes. The aim of the study is to determine the possibilities and limitations of creating a theory of institutional changes, which is considered as an independent theoretical direction within the framework of new institutionalism. The methodology is “institutional economics”, presented by both the position of the new and old schools, as well as D. Acemoglu’s views, which are the quintessence of the new institutional approach. Based on this methodology, it is shown that the theory of institutional and economic dysfunctions, explaining the various effects of effective and ineffective functioning of rules, provides prospects for explaining institutional changes and even for building appropriate models. By means of functional analysis, it is possible not only to rethink some established positions of the new institutionalism, but also to revise some of them (the Coase theorem), and also to show the need to form a theory of institutional changes within the framework of the general theory of economic development, that is, taking into account a wider range of factors and interactions of institutions and agents. The limiting points within the framework of Acemoglu’s approach, the errors of the initial institutional choice, the interpretation of the “economic miracle” only on the basis of assessing institutional changes and institutional reforms are highlighted.