Economics and Institutions

Overview

Nobel prize winner Douglass North (1991) defines institutions as ‘humanely devised constraints that structure political, economic and social interaction.’ Institutions provide societies and individuals with a level of organization and security that is welfare enhancing both in good times and, perhaps especially, during times of uncertainty and crisis. Douglass North observes: ‘Throughout history, institutions have been devised by human beings to create order and reduce uncertainty in exchange.’ North assigns institutions a crucial role in the economy: ‘Institutions provide the incentive structure of an economy; as that structure evolves, it shapes the direction of economic change towards growth, stagnation, or decline.’

Institutions play a major role in our economy. Learning how the economy works and how it can be governed requires an understanding of economic institutions. Completion of the programme will prepare you for a career as a professional economist in government or business or provide you with a solid basis for an academic career.

As all courses are taught in English, the programme is particularly well suited for international students. Class size is small, averaging about 25 students, which creates a personal and intense working atmosphere. These conditions encourage students to actively participate in class and to take part in debates on economic theory and policy issues.