History and Institutions Did Not Need a Nobel Prize to be ‘Cool’ Again. Heterodox Economists Had Already Accomplished That

Key Points

• This research aims to critique the focus of mainstream economics on formal institutions, emphasizing the importance of informal institutions in driving change.
• Analysis of the Nobel Prize-winning research on political and economic institutions.
• Comparison of formal versus informal institutions in economic theories.
• Review of heterodox economists' perspectives on inequality and social costs.
• Heterodox economists advocate that informal institutions like community solidarity are critical for understanding economic outcomes.
• Mainstream focus on formal institutions alone overlooks key factors contributing to social costs and inequality.
• The emphasis on precarity provides a deeper understanding of growth processes beyond traditional economic models.