Abstract
This paper analyzes the evolution of Thorstein Veblen’s institutionalism by Clarence Ayres and the Cactus Branch. Veblen is a founding father of the Original Institutional Economics. Despite Veblen’s contribution to institutional economics, his academic career was confusing. No university can be considered Veblen’s “alma matter” and he did not tutor any PhD students. Hence, Veblenians had little or no contact with Veblen. Clarence Ayres is most definitely one of the most important Veblenians. Different from Veblen, Ayres made the University of Texas, at Austin, his academic home. He instructed several students on the Veblenian economics tradition. The Ayresian group of institucionalists became known as the Cactus Branch. However, Ayres held a particular perspective of Veblen’s writings; Ayresian institutionalism focused on the instrumental-ceremonial dichotomy. The 1980s witnessed a rediscovery of Veblenian institucionalism. Institutionalists from the Cactus Branch introduced readings of Ayresian institutionalism closer to the Veblenian perspective. A segment of the Cactus Branch self-identified as Radical Institutionalists recovered Veblen’s social criticism in their studies.
Keywords:
Thorstein Veblen; Institutional economics; Original institutional economics; Old institutional economics; Cactus branch; Radical institutionalism