On the validity of the division into formal and informal institutions

Izabela Ostoj

DOI: http://dx.doi.org/10.12775/EiP.2019.005


Motivation: Definitions and classifications constitute the most important elements of each theory. The division of institutions into formal and informal is commonly applied within new institutional economics. In his papers devoted to institution measurement S. Voigt developed the division of institutions into internal and external, argued its functionality and, to a certain extent, its superiority.

Aim: The aim of this paper is to investigate and assess the validity and applicability of the division of institutions into formal and informal from the perspective of the analysis of social and economic phenomena.

Results: Based on literature, as well as drawing on the origins of the institution classification and referenced examples, it was proved that the division into formal and informal institutions is not only at least equally precise as other classifications, but it is also consistent and logical, which determines its high usefulness in scientific research.


nstitutions; formal institutions; informal institutions; legal origin

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