Thorstein Veblen’s political economy and its implications for the original institutionalism agenda

Abstract

This article seeks to discuss the nature of Thorstein Veblen’s institutionalist thought, establishing three analytical fronts stemming from this thought. In the first part, we will briefly discuss the main points of Veblen’s “political economy” and the concepts that
constitute his vision of capitalism. In the second part, we will discuss the relevance of individuals’ habits and behaviors in shaping the social structure, which reveals the notions of “enabling myths”, “vested interests” and emulation, used in Veblen’s works. In the third part, we will discuss the concept of the “Veblenian dichotomy” proposed by Clarence Ayres, within post-Veblenian American institutionalism. In the fourth part, we will present a summary table of the main points of the institutionalist methodology derived from Veblen.