Doug North has died

by Henry Farrell on November 24, 2015

Obituary here (via Tyler Cowen). He was a fascinating and very important writer and thinker, although his final two books were not as strong as his earlier work. The politics of his ideas are complicated – on the one hand moving away from the efficiency arguments of markets towards political processes of institutional formation, but on the other never precisely able to decide whether and when these political institutions were guided by a logic of lowering transaction costs or by the desire of powerful actors to reap distributional benefits. Path dependence in his work serves more as a stand-in for an explanation than an explanation in its own right, especially given the continuing question (not really resolved in his work or the work of those he influenced) as to why some economies (by his account) changed and began to develop towards the rule of law while others did not. Still, even if he didn’t explain this, no-one else has done an especially good job either. One thing that is likely to get overlooked in his work is his continued engagement with the left. The first time I had had a serious conversation with him, he described himself as a “Marxist of the right,” which seems correct to me (I’m pretty sure I’m not the only person he used this self-description with). There’s a good essay to be written on his encounter with Karl Polanyi – this essay (PDF) disagreeing with Polanyi contains the seeds of some of his most crucial arguments. He will be missed.