The

Meanings
and Types
What's New?

Meanings of Institution

Institutions are defined as stable and recurring patterns

of behavior that govern the actions of individuals within
a community. They serve a social purpose by mediating
the rules that dictate living behavior. Institutions can
also be seen as integrated systems of rules that
structure social interactions, according to Hodgson.

Formal and Informal

Institutions(Sharon Gilad
2001)

The text discusses the concept of institutions, which can be

either formal or informal. Formal institutions are officially
established by governments and laws are a prime example
of this. The Philippine government mandates various formal
institutions such as driving on the right side of the street,
using pesos as legal currency, and celebrating
Independence Day on June 12th. These institutions have an
impact on production, consumption, and exchange. The
most significant formal institution established by
government is government itself.