A cyclical model of institutional change

Previous research on institutional change has largely ignored its cyclical nature. This paper aims to introduce a four‐phase cyclical model of long‐term institutional change.

The recurrent patterns of the model have been identified from previous technological revolutions and their accompanying surges of development. The model also incorporates generational theory as a driver of institutional change.

The model predicts that a multi‐year institutional crisis is currently underway that has important implications for practitioners. The paper also describes proposed solutions to the current crisis.

The model developed synthesizes disparate institutional theories to build a new explanation for long‐term economic development.