Institutional Analysis and Praxis The Social Fabric Matrix Approach

The Social Fabric Matrix Approach (SFM-A) is a rigorous and holistic methodology for undertaking policy-relevant, complex systems research. This book contains both extensive applications of the SFM-A to contemporary issues and chapters that embed applied

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stitutional Analysis and Praxis The Social Fabric Matrix Approach

Institutional Analysis and Praxis

Tara Natarajan s Wolfram Elsner Scott T. Fullwiler Editors

Institutional Analysis and Praxis The Social Fabric Matrix Approach

Editors Tara Natarajan Saint Michael’s College Winooski Park, Box 234 Colchester, VT 05439 USA

Wolfram Elsner Institute for Institutional and Innovation Economics-iino Faculty for Economics and Business Studies University of Bremen Hochschulring 4 D-28359 Bremen Germany

Scott T. Fullwiler Wartburg College 100 Wartburg Blvd. Waverly, IA 50677 USA

ISBN 978-0-387-88740-1 e-ISBN 978-0-387-88741-8 DOI 10.1007/978-0-387-88741-8 Springer New York Dordrecht Heidelberg London Library of Congress Control Number: 2009930640 © Springer Science+Business Media, LLC 2009 All rights reserved. This work may not be translated or copied in whole or in part without the written permission of the publisher (Springer Science+Business Media, LLC, 233 Spring Street, New York, NY 10013, USA), except for brief excerpts in connection with reviews or scholarly analysis. Use in connection with any form of information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed is forbidden. The use in this publication of trade names, trademarks, service marks, and similar terms, even if they are not identified as such, is not to be taken as an expression of opinion as to whether or not they are subject to proprietary rights. Printed on acid-free paper Springer is part of Springer Science+Business Media (www.springer.com)

To Greg and Theresa Hayden

Foreword

There has never been a better time for the social fabric matrix. As this book is being published, the idea that unregulated market capitalism leads to the best of all possible worlds has been thoroughly discredited. A series of economic and social problems have come to the forefront of national discussion and policy debates. There is now widespread acceptance that human activity, particularly the consumption of nonrenewable energy resources, has contributed to global warming. The lack of oversight of the financial industry encouraged reckless practices that endangered the stability of the entire financial system, prompting bailout efforts based on the fragile interdependence of the financial and economic systems. The shortcomings of our health care system are increasingly evident, including the growing number of uninsured citizens, the difficulties for businesses in offering health insurance, and the effects of health and health care on the ability of individuals and families to maintain a decent standard of living. Perhaps the best illustration of a complex system that cries out for coordinated policy-making is in the critical area of energy, where public and private decisions on energy policy not only have direct effects on consumer costs, but also have effects on global warming, local ecosystems, international relations, the health of our citizens, and the sustainability of comp