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The importance of institutions
The importance of institutions
Dec 25, 2025 10:01 PM

Note: This is post #77 in a weekly video series on basic economics.

When es to understanding economic growth, says Tyler Cowen of Marginal Revolution University, institutions are often critically important.

When economists talk about institutions, they mean things like laws and regulations, such as property rights, dependable courts and political stability. Institutions also include cultural norms, such as the ones surrounding honesty, trust, and cooperation.

(If you find the pace of the videos too slow, I’d mend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video plays by clicking on “Settings” (the gear symbol) and changing “Speed” from normal to 1.25, 1.5 or 2.)

Click here to see other videos in the Introduction to Economics series.

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