We identify the experimental method of institutional reformation in the institutional economics of John R. Commons as an ancestor of post-Keynesian institutionalism (PKI). By considering Commons’ abstract explanations and cases, as well as by introducing a current experimentalist perspective and current cases, we aim to address three issues. First, we aim to clearly understand his experimental method, which is scattered throughout his masterpiece (Commons 1934). While an experimental method is normally understood as a pragmatic collective inquiry repeating the process of “testing” a socioeconomic effect of an idea (including an institution) and “amendment” of the idea, this chapter shows that when we see the experimental method as a sort of institutionalized action, “an institution for experimentation,” “an institutional chain” for experimentation, and “public facilitation” might be key elements. Second, we imply the efficacy of the method for the current economy, where intangible property takes on increasing importance and innovation is compulsively required. Third, we identify the relationship between the experimental method for institutional reform and PKI in terms of “futurity,” a key element of PKI, and public policy formation.
Kitagawa et al. (Mon,) studied this question.