Institutions, Agglomeration Economies, and Interstate Migration

Abstract

The market is not the only spontaneous order. Hayek himself drew attention to language and English common law as other examples, noting that they had first been identified as such by Scottish Enlightenment philosophers such as Adam Smith and Adam Ferguson. Hence, such orders “are made with equal blindness to the future; and nations stumble upon establishments, which are indeed the results of human action, but not the execution of any human design” (Ferguson, 1782, sec. II). In the 20th century, Michael Polanyi used the term spontaneous order for the polycentric feedback system that explains the growth of scientific knowledge (Polanyi, 1962).

Citation

Emanuel Andersson, D. and Taylor, J.A. (2012), "Institutions, Agglomeration Economies, and Interstate Migration", Emanuel Andersson, D. (Ed.) The Spatial Market Process (Advances in Austrian Economics, Vol. 16), Emerald Group Publishing Limited, Leeds, pp. 233-263. https://doi.org/10.1108/S1529-2134(2012)0000016012