Institution of economic culture as homeostatic system

• Published in: Vìsnik Žitomirsʹkogo Deržavnogo Tehnologìčnogo Unìversitetu: Ekonomìčnì Nauki
• Main Author: Yu.V. Ushchapovskyy
• Format: Article
• Language: English
• Published: Zhytomyr State Technological University 2015-06-01
• Subjects: system approach; general systems theory; economic culture; value; value-regulatory approach; institutions; economic behavior; informal constraints; formal rules; methodology of institutionalism; institution environment
• Online Access: http://ven.ztu.edu.ua/article/view/49322

Institution of economic culture is a part of homeostatic system. The importance of economic culture to understand economic behavior of a man and conceptual foundations of institutionalism paradigm implies its study as a whole system. The place of economic culture as a system institution in the context of a single paradigm formation of modern institutionalism is investigated in the article. The author emphasizes the necessity of the theory and methodology in the system approach to institutionalism that provides a transformation from linear to nonlinear analysis, from the one-dimensional to multidimensional one, and from the research of coordination phenomena mainly to subordination and other complex forms of interaction. The study of economic culture is based on the principles of general systems theory (consistency and isomorphism). As economic culture is a relatively independent system enough from the point of culture system, with its own component and structure as a form of communication between them; it differs in its functions of elements and integrity, the unity of the inner and outer environment; it is subjected to certain laws of development as a whole and its components as well; but analyzed system-wide features of economic culture are integrity, hierarchical and integrative. The decomposition patterns of economic culture in the context of economic regulation of economic behavior as a part of the institutional approach are provided. The importance of value in economic activities and isolation levels of economic culture on the basis of economic interactions is presumed. The structural analysis of the main elements of economic culture based on the value-normative approach proposed by D. Nortom according to the institution separation in terms of formalization standards of laws to formal and informal. Institutions that provide informal restrictions in social and economic activities of the individual or group implies customs, traditions, morals, myths, religious and political norms, ethics; and institutions that set up certain formal rules emphasize corporate standards. The author comes into conclusion that structure analysis of basic components shows the imperfection of the principle of methodological individualism in the conceptual approaches of neoinstitutionalism. Thus, the acceptance of ontological priority for the individual under the formation of the institutional constraints of economic behavior is insufficient, and it requires the consideration of the restrictions imposed on the individual by economic culture as a part of paradigm institutionalism.