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Formal and informal institutions: some problems of meaning, impact, and interaction

Geoffrey M. Hodgson

Journal of Institutional Economics2025https://doi.org/10.1017/s1744137424000249article
AJG 3ABDC B
Weight
0.65

Abstract

Taking inspiration from the work of Douglass North, much institutional research attempts a distinction between ‘formal’ and ‘informal’ institutions. North often associated ‘formal institutions’ with rules enforced through a legal system. It is suggested here that this lead should be followed and refined. In which case ‘legal system’ and ‘law’ require definitions. An alternative claim, that ‘formal’ basically means ‘written down’, is arguably less useful. Stressing the importance of clear definitions in this area, this paper considers a case where slight modifications yield strikingly different results. Some options concerning the meanings of ‘culture’ and their relation to institutions are briefly noted. Changes in, and interactions between, ‘formal’ and ‘informal’ institutions are considered, with illustrative examples. Contrary to some authors, informal institutions can sometimes change rapidly, in some cases in response to state legislation.

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https://doi.org/https://doi.org/10.1017/s1744137424000249

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@article{geoffrey2025,
  title        = {{Formal and informal institutions: some problems of meaning, impact, and interaction}},
  author       = {Geoffrey M. Hodgson},
  journal      = {Journal of Institutional Economics},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1017/s1744137424000249},
}

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Formal and informal institutions: some problems of meaning, impact, and interaction

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Evidence weight

0.65

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.69 × 0.4 = 0.28
M · momentum0.97 × 0.15 = 0.15
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.