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Induced Technical Change, Induced Institutional Change and Mechanism Design

  • Ruttan, Vernon W.

In this paper I review the theories of induced technical and institutional change. I discuss the sources of the demand and supply of institutional innovation. The sources of institutional innovation are illustrated by changes in land tenure relations in Philippine agriculture, by the development of institutional design principles based on studies of small scale resource management systems and by the transition from command and control to market based systems of resource management in the United States. I introduce the concept of incentive compatible mechanism and institutional design. In a final section I elaborate a pattern model that maps the relationships among changes in resource endowments, cultural endowments, technology and institutions.

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Paper provided by University of Minnesota, Department of Applied Economics in its series Staff Papers with number 7050.

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Date of creation: 2008
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Handle: RePEc:ags:umaesp:7050
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  1. Cleaver, Harry M, Jr, 1972. "The Contradictions of the Green Revolution," American Economic Review, American Economic Association, vol. 62(2), pages 177-86, May.
  2. Tan, Elaine S., 2005. "Ideology, interest groups, and institutional change: the case of the British prohibition of wages in kind," Journal of Institutional Economics, Cambridge University Press, vol. 1(02), pages 175-191, December.
  3. Boettke, Peter J. & Coyne, Christopher J., 2005. "Methodological individualism, spontaneous order and the research program of the Workshop in Political Theory and Policy Analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 57(2), pages 145-158, June.
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