After Adan Smith, we have undergone two patterns of economics: the pattern of classical economics and the pattern of neoclassical economics. Both belong to a more general pattern of economics – The General Theory of Economy.
In terms of the information space of an economy for economic analysis, the pattern of classical economics is the general theory of the technology of production while the pattern of neoclassical economics is the general theory of the consumption-based preference of agents and the technology of production. The trade-off relation between the stock of institutions and the level of economic uncertainty has not yet been included in the information space for economic analysis. Therefore, unlike the historical accumulation of the stock of production capital, the historical accumulation of institutions is not allowed for as a budget-constrained process of an economy. As soon as we take into account of the state variable of institutions, we find that the pattern of economics must be changed to the general theory of the preference of agents, the technology of production and the institution of reciprocity. Accordingly, the information space for economic analysis is changed to the information space of an institutionalized economy.
Moreover, in the light of various modes of civilization or civilized society, economies of different geopolitical conditions are institutionalized in kinds. The so-called “private-ownership market economy” is not universal, particular to the modern mode of human society or civilization.
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