■

Eggertsson, T. (1997). 'The old theory of economic policy and the new institutionalism'. World Development 25(8): 1187-1203.
http://www.sciencedirect.com/science/article/B6VC6-3SX1GPR-2/2/9231075d18ccdedada56318d85f67822
In economics, recent emphasis on institutions suggests new policy dimensions for the traditional theory of economic policy which originated with Tinbergen and others at the time of the Keynesian revolution. The paper presents elements of the traditional view--instruments, targets, and policy models--and then considers new aspects of policy, especially policy for structural change. The discussion emphasizes the implications for institutional design of incomplete knowledge, and endogenous politics. Both public and private actors rely on incomplete policy models, and the models themselves can become (intermediate) targets of policy.