Ostrom in 2009
Elinor Claire Awan
August 7, 1933
|Died||June 12, 2012 78) (aged|
Vincent Ostrom (1965–2012; her death)
|New institutional economics|
|John P. McIver|
|Information at IDEAS / RePEc|
Elinor Claire "Lin" Ostrom (née Awan; August 7, 1933 – June 12, 2012) was an American political economistwhose work was associated with the New Institutional Economics and the resurgence of political economy. In 2009, she was awarded the Nobel Memorial Prize in Economic Sciences for her "analysis of economic governance, especially the commons", which she shared with Oliver E. Williamson. To date, she remains one of only two women to win the Nobel Prize in Economics.
Political economy is the study of production and trade and their relations with law, custom and government; and with the distribution of national income and wealth. As a discipline, political economy originated in moral philosophy, in the 18th century, to explore the administration of states' wealth, with "political" signifying the Greek word polity and "economy" signifying the Greek word "okonomie". The earliest works of political economy are usually attributed to the British scholars Adam Smith, Thomas Malthus, and David Ricardo, although they were preceded by the work of the French physiocrats, such as François Quesnay (1694–1774) and Anne-Robert-Jacques Turgot (1727–1781).
New institutional economics (NIE) is an economic perspective that attempts to extend economics by focusing on the social and legal norms and rules that underlie economic activity and with analysis beyond earlier institutional economics and neoclassical economics. It can be seen as a broadening step to include aspects excluded in neoclassical economics. It rediscovers aspects of classical political economy.
The Nobel Memorial Prize in Economic Sciences, commonly referred to as the Nobel Prize in Economics, is an award for outstanding contributions to the field of economics, and generally regarded as the most prestigious award for that field. The award's official name is The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel.
After graduating with a B.A. and Ph.D. from UCLA, Ostrom lived in Bloomington, Indiana, and served on the faculty of Indiana University, with a late-career affiliation with Arizona State University. She was Distinguished Professor at Indiana University and the Arthur F. Bentley Professor of Political Science and co-director of the Workshop in Political Theory and Policy Analysis at Indiana University, as well as research professor and the founding director of the Center for the Study of Institutional Diversity at Arizona State University in Tempe.She was a lead researcher for the Sustainable Agriculture and Natural Resource Management Collaborative Research Support Program (SANREM CRSP), managed by Virginia Tech and funded by USAID. Beginning in 2008, she and her husband Vincent Ostrom advised the journal Transnational Corporations Review.
Bloomington is a city in and the county seat of Monroe County in the southern region of the U.S. state of Indiana. It is the seventh-largest city in Indiana and the fourth-largest outside the Indianapolis metropolitan area. According to the Monroe County History Center, Bloomington is known as the "Gateway to Scenic Southern Indiana." The city was established in 1818 by a group of settlers from Kentucky, Tennessee, the Carolinas, and Virginia who were so impressed with "a haven of blooms" that they called it Bloomington.
Indiana is a U.S. state in the Midwestern and Great Lakes regions of North America. Indiana is the 38th-largest by area and the 17th-most populous of the 50 United States. Its capital and largest city is Indianapolis. Indiana was admitted to the United States as the 19th U.S. state on December 11, 1816. Indiana borders Lake Michigan to the northwest, Michigan to the north, Ohio to the east, Kentucky to the south and southeast, and Illinois to the west.
Indiana University Bloomington is a public research university in Bloomington, Indiana. It is the flagship institution of the Indiana University system and, with over 40,000 students, its largest university.
Elinor Claire Awan was born in Los Angeles, California as the only child of Leah Hopkins, a musician, and Adrian Awan, a set designer.Her parents separated early in her life, and Elinor lived with her mother most of the time. She attended a Protestant church with her mother and often spent weekends with her father's Jewish family. Growing up in the post-Depression era to divorced artisans, Ostrom described herself as a "poor kid." Her major recreational activity was swimming, where she eventually joined a swimming team and swam competitively until she started teaching swimming to earn funds to help put herself through college.
Los Angeles, officially the City of Los Angeles and often known by its initials L.A., is the most populous city in California; the second most populous city in the United States, after New York City; and the third-most populous city in North America, after Mexico City and New York City. With an estimated population of nearly four million people, Los Angeles is the cultural, financial, and commercial center of Southern California. The city is known for its Mediterranean climate, ethnic diversity, Hollywood, the entertainment industry, and its sprawling metropolis.
California is a state in the Pacific Region of the United States. With 39.6 million residents across a total area of about 163,696 square miles (423,970 km2), California is the most populous U.S. state and the third-largest by area. The state capital is Sacramento. The Greater Los Angeles Area and the San Francisco Bay Area are the nation's second- and fifth-most populous urban regions, with 18.7 million and 9.7 million residents respectively. Los Angeles is California's most populous city, and the country's second-most populous, after New York City. California also has the nation's most populous county, Los Angeles County, and its largest county by area, San Bernardino County. The City and County of San Francisco is both the country's second-most densely populated major city after New York City and the fifth-most densely populated county, behind only four of the five New York City boroughs.
Ostrom grew up across the street from Beverly Hills High School, which she attended, graduating in 1951.She regarded this as fortunate, for the school had a very high rate of college admittance. During Ostrom's junior year, she was encouraged to join the debate team. Learning debate tactics had an important impact on her ways of thinking. It allowed her to realize there are two sides to public policy and it is imperative to have quality arguments for both sides. As a high school student, Elinor Ostrom had been discouraged from studying Trigonometry, as girls without top marks in Algebra and Geometry were not allowed to take the subject. No one in her immediate family had any college experience, but seeing that 90% of students in her high school attended college, she saw it as the "normal" thing to do. Her mother did not wish for her to attend college, seeing no reason for it.
Beverly Hills High School is the only major public high school in Beverly Hills, California. The other public high school in Beverly Hills, Moreno High School, is a small alternative school located on Beverly's campus.
She attended UCLA, receiving a B.A. (with honors) in political science at UCLA in 1954.By attending multiple summer session and extra classes throughout semesters, she was able to graduate in three years. She worked at the library, dime store, and bookstore in order to pay for her fees, which were $50 per semester. She married a classmate, Charles Scott, and worked at General Radio in Cambridge, Massachusetts while Scott attended Harvard Law School. They divorced several years later when Ostrom began contemplating a PhD. After graduation, she had trouble finding a job because employers presumed that she was only looking for jobs as a teacher or secretary. She began a job as an Export Clerk after taking a correspondence course for shorthand, which she later found to be helpful when taking notes in face-to-face interviews on research projects. After a year, she obtained a position as Assistant Personnel Manager in a business firm that had never before hired a woman in anything but a secretarial position. This job inspired her to think about attending graduate-level courses and eventually applying for a research assistantship and admission to a Ph.D. program.
Political science is a social science which deals with systems of governance, and the analysis of political activities, political thoughts, and political behavior.
The University of California, Los Angeles (UCLA), is a public research university in Los Angeles. It became the Southern Branch of the University of California in 1919, making it the fourth-oldest of the 10-campus University of California system. It offers 337 undergraduate and graduate degree programs in a wide range of disciplines. UCLA enrolls about 31,000 undergraduate and 13,000 graduate students and had 119,000 applicants for Fall 2016, including transfer applicants, making the school the most applied-to of any American university.
General Radio Company was a broad-line manufacturer of electronic test equipment from 1915 to 2001.
Lacking trigonometry from high school, she was consequently rejected for an economics PhD at UCLA.She was admitted to UCLA's graduate program in political science, where she was awarded an M.A. in 1962 and a PhD in 1965. She married political scientist Vincent Ostrom in 1963, whom she met while assisting his research on water resource governance in Southern California. The teams of graduate students she was involved with were analyzing the political economic effects of a group of groundwater basins in Southern California. Specifically, Ostrom was assigned to look at the West Basin. She found it is very difficult to manage a common-pool resource when it is used between individuals.
Vincent Alfred Ostrom was an American political economist and the Founding Director of the Ostrom Workshop based at Indiana University and the Arthur F. Bentley Professor Emeritus of Political Science. He and his wife, the economist Elinor Ostrom, made numerous contributions to the field of political science, political economy, and public choice.
In 1961 Vincent Ostrom, Charles Tiebout and Robert Warren published "The organization of government in metropolitan areas," which would go on to be an influential article and introduced themes that would be central to the Ostroms' work.However, the article aggravated a conflict with UCLA's Bureau of Governmental Research because, counter to the Bureau's interests, it advised against centralization of metropolitan areas in favor of polycentrism. This conflict prompted the Ostroms to leave UCLA. They moved to Bloomington, Indiana in 1965, when Vincent accepted a political science professorship at Indiana University. She joined the faculty as Visiting Assistant Professor. The first course she taught was American Government at 7:30.
Ostrom was richly informed by fieldwork, both her own and that of others. During her PhD at the University of California, Los Angeles, she spent years studying the water wars and pumping races going on in the 1950s in her own dry backyard. In contrast to the prevailing rational-economic predictions of Malthusianism and the tragedy of the commons, she showed cases where humans were not trapped and helpless amid diminishing supplies. In her book Governing the Commons, she draws on studies of irrigation systems in Spain and Nepal, mountain villages in Switzerland and Japan, and fisheries in Maine and Indonesia.
In 1973, Ostrom and her husband founded the Workshop in Political Theory and Policy Analysis at Indiana University.Examining the use of collective action, trust, and cooperation in the management of common pool resources (CPR), her institutional approach to public policy, known as the Institutional analysis and development framework (IAD), has been considered sufficiently distinct to be thought of as a separate school of public choice theory. She authored many books in the fields of organizational theory, political science, and public administration. Elinor Ostrom was a dedicated scholar until the very end of her life. Indeed, on the day before she died, she sent e-mail messages to at least two different sets of coauthors about papers that she was writing with them. She was the Chief Scientific Advisor for the International Council for Science (ICSU) Planet Under Pressure meeting in London in March, and Johan Rockstrom of the Stockholm Resilience Centre wrote that
"Lin, up until the very end, was heavily involved in our preparations for the Nobel Laureate dialogues on global sustainability we will be hosting in Rio 17th and 18th of June during the UN Rio+20 Earth Summit. In the end, she decided she could not come in person, but was contributing sharp, enthusiastically charged, inputs, in the way only she could."
It was long unanimously held among economists that natural resources that were collectively used by their users would be over-exploited and destroyed in the long-term. Elinor Ostrom disproved this idea by conducting field studies on how people in small, local communities manage shared natural resources, such as pastures, fishing waters, and forests. She showed that when natural resources are jointly used by their users, in time, rules are established for how these are to be cared for and used in a way that is both economically and ecologically sustainable.
She was senior research director of the Vincent and Elinor Ostrom Workshop in Political Theory and Policy Analysis, Distinguished Professor and Arthur F. Bentley Professor of Political Science in the College of Arts and Sciences, and professor in the School of Public and Environmental Affairs.
Ostrom's early work emphasized the role of public choice on decisions influencing the production of public goods and services.Among her better known works in this area is her study on the polycentricity of police functions in Indianapolis. Caring for the commons had to be a multiple task, organised from the ground up and shaped to cultural norms. It had to be discussed face to face, and based on trust. Dr. Ostrom, besides poring over satellite data and quizzing lobstermen herself, enjoyed employing game theory to try to predict the behaviour of people faced with limited resources. In her Workshop in Political Theory and Policy Analysis at Indiana University—set up with her husband Vincent, a political scientist, in 1973—her students were given shares in a national commons. When they simply discussed what they should do before they did it, their rate of return from their "investments" more than doubled. Her later, and more famous, work focused on how humans interact with ecosystems to maintain long-term sustainable resource yields. Common pool resources include many forests, fisheries, oil fields, grazing lands, and irrigation systems. She conducted her field studies on the management of pasture by locals in Africa and irrigation systems management in villages of western Nepal (e.g., Dang Deukhuri). Her work has considered how societies have developed diverse institutional arrangements for managing natural resources and avoiding ecosystem collapse in many cases, even though some arrangements have failed to prevent resource exhaustion. Her work emphasized the multifaceted nature of human–ecosystem interaction and argues against any singular "panacea" for individual social-ecological system problems.
The Workshop in Political Theory and Policy Analysis was meant to utilize diverse scholars throughout economics, political science, and other fields to collaborate and attempt to understand how institutional arrangements in a diverse set of ecological and social economic political settings affected behavior and outcomes. The goal was not to fly around the world collecting data, rather it is to create a network of scholars who live in particular areas of the world and had strong interests in forest conditions and forest policy conducted the studies.
Ostrom identified eight "design principles" of stable local common pool resource management:She also discussed the eight "design principles" on Big Think.
These principles have since been slightly modified and expanded to include a number of additional variables believed to affect the success of self-organized governance systems, including effective communication, internal trust and reciprocity, and the nature of the resource system as a whole.
Ostrom and her many co-researchers have developed a comprehensive "Social-Ecological Systems (SES) framework", within which much of the still-evolving theory of common-pool resources and collective self-governance is now located.
According to the Norwegian Institute for Urban and Regional Research, "Ostrom cautioned against single governmental units at global level to solve the collective action problem of coordinating work against environmental destruction. Partly, this is due to their complexity, and partly to the diversity of actors involved. Her proposal was that of a polycentric approach, where key management decisions should be made as close to the scene of events and the actors involved as possible." Ostrom helped disprove the idea held by economists that natural resources would be over-used and destroyed in the long run. Elinor Ostrom disproved this idea by conducting field studies on how people in small, local communities manage shared natural resources, such as pastures, fishing waters in Maine and Indonesia, and forests in Nepal. She showed that when natural resources are jointly used by their users, in time, rules are established for how these are to be cared for and used in a way that is both economically and ecologically sustainable.
Ostrom's law is an adage that represents how Elinor Ostrom's works in economics challenge previous theoretical frameworks and assumptions about property, especially the commons. Ostrom's detailed analyses of functional examples of the commons create an alternative view of the arrangement of resources that are both practically and theoretically possible. This eponymous law is stated succinctly by Lee Anne Fennell as:
A resource arrangement that works in practice can work in theory.
Ostrom was a member of the United States National Academy of Sciencesand president of the American Political Science Association and the Public Choice Society. In 1999, she became the first woman to receive the prestigious Johan Skytte Prize in Political Science.
Ostrom was awarded the Frank E. Seidman Distinguished Award for Political Economy in 1998. Her presented paper, on "The Comparative Study of Public Economies",was followed by a discussion among Kenneth Arrow, Thomas Schelling and Amartya Sen. She was awarded the John J. Carty Award from the National Academy of Sciences in 2004, and, in 2005, received the James Madison Award by the American Political Science Association. In 2008, she became the first woman to receive the William H. Riker Prize in political science; and, the following year, she received the Tisch Civic Engagement Research Prize from the Jonathan M. Tisch College of Citizenship and Public Service at Tufts University. In 2010, the Utne Reader magazine included Ostrom as one of the "25 Visionaries Who Are Changing Your World". She was named one of Time magazine's "100 Most Influential People in the World" in 2012.
The International Institute of Social Studies (ISS) awarded its Honorary Fellowship to her in 2002.
In 2008 she was awarded an honorary degree, doctor honoris causa, at the Norwegian University of Science and Technology.
In July 2019, Indiana University Bloomington announced that as part of their Bridging the Visibility Gap initiative, a statue of Ostrom would be placed outside of the building which houses the University's political science department.
In 2009, Ostrom became the first woman to receive the prestigious Nobel Memorial Prize in Economic Sciences. "The announcement of her prize caused amazement to several economists," a Princeton economics professor said, "including some prominent colleagues who had never even heard of her." million) prize for their separate work in economic governance. As she had done with previous monetary prizes, Ostrom donated her award to the Workshop she helped to found.The Royal Swedish Academy of Sciences cited Ostrom "for her analysis of economic governance", saying her work had demonstrated how common property could be successfully managed by groups using it. Ostrom and Oliver E. Williamson shared the 10-million Swedish kronor (€990,000; $1.44
The Royal Swedish Academy of Sciences said Ostrom's "research brought this topic from the fringe to the forefront of scientific attention...by showing how common resources—forests, fisheries, oil fields or grazing lands—can be managed successfully by the people who use them rather than by governments or private companies". Ostrom's work in this regard challenged conventional wisdom, showing that common resources can be successfully managed without government regulation or privatization.
Ostrom was diagnosed with pancreatic cancer in October 2011. a.m. Tuesday, June 12, 2012, at IU Health Bloomington Hospital at the age of 78. On the day of her death, she published her last article, "Green from the Grassroots," in Project Syndicate. Indiana University president Michael McRobbie wrote: "Indiana University has lost an irreplaceable and magnificent treasure with the passing of Elinor Ostrom". Her Indiana colleague Michael McGinnis commented after her death that Ostrom donated her share of the $1.4 million Nobel award money to the Workshop—the biggest, by far, of several academic prizes with monetary awards that the Ostroms had given to the center over the years. Her husband Vincent died 17 days later from complications related to cancer. He was 92.During the final year of her life, she continued to write and lecture, giving the Hayek Lecture at the Institute of Economic Affairs just eleven weeks before her death. She died at 6:40
The tragedy of the commons is a situation in a shared-resource system where individual users, acting independently according to their own self-interest, behave contrary to the common good of all users, by depleting or spoiling that resource through their collective action. The theory originated in an essay written in 1833 by the British economist William Forster Lloyd, who used a hypothetical example of the effects of unregulated grazing on common land in Great Britain and Ireland. The concept became widely known as the "tragedy of the commons" over a century later due to an article written by the American biologist and philosopher, Garrett Hardin in 1968. In this modern economic context, "commons" is taken to mean any shared and unregulated resource such as atmosphere, oceans, rivers, fish stocks, roads and highways, or even an office refrigerator.
Public choice, or public choice theory, is "the use of economic tools to deal with traditional problems of political science". Its content includes the study of political behavior. In political science, it is the subset of positive political theory that studies self-interested agents and their interactions, which can be represented in a number of ways – using standard constrained utility maximization, game theory, or decision theory.
Oliver Eaton Williamson is an American economist, a professor at the University of California, Berkeley, and recipient of the 2009 Nobel Memorial Prize in Economic Sciences, which he shared with Elinor Ostrom.
Institutional economics focuses on understanding the role of the evolutionary process and the role of institutions in shaping economic behaviour. Its original focus lay in Thorstein Veblen's instinct-oriented dichotomy between technology on the one side and the "ceremonial" sphere of society on the other. Its name and core elements trace back to a 1919 American Economic Review article by Walton H. Hamilton. Institutional economics emphasizes a broader study of institutions and views markets as a result of the complex interaction of these various institutions. The earlier tradition continues today as a leading heterodox approach to economics.
A social dilemma is a situation in which an individual profits from selfishness unless everyone chooses the selfish alternative, in which case the whole group loses. Problems arise when too many group members choose to pursue individual profit and immediate satisfaction rather than behave in the group's best long-term interests. Social dilemmas can take many forms and are studied across disciplines such as psychology, economics, and political science. Examples of phenomena that can be explained using social dilemmas include resource depletion, low voter turnout, and overpopulation.
John A. Baden is founder and chairman of the Foundation for Research on Economics and the Environment (FREE) based in Bozeman, Montana.
The commons is the cultural and natural resources accessible to all members of a society, including natural materials such as air, water, and a habitable earth. These resources are held in common, not owned privately. Commons can also be understood as natural resources that groups of people manage for individual and collective benefit. Characteristically, this involves a variety of informal norms and values employed for a governance mechanism. Commons can be also defined as a social practice of governing a resource not by state or market but by a community of users that self-governs the resource through institutions that it creates.
In economics, a common-pool resource (CPR) is a type of good consisting of a natural or human-made resource system, whose size or characteristics makes it costly, but not impossible, to exclude potential beneficiaries from obtaining benefits from its use. Unlike pure public goods, common pool resources face problems of congestion or overuse, because they are subtractable. A common-pool resource typically consists of a core resource, which defines the stock variable, while providing a limited quantity of extractable fringe units, which defines the flow variable. While the core resource is to be protected or nurtured in order to allow for its continuous exploitation, the fringe units can be harvested or consumed.
The International Forestry Resources and Institutions (IFRI) Network is a collective of research partners at 12 universities or non-governmental organizations in 11 countries around the world that focus on how institutions and governance arrangements shape forest use and management outcomes. Scholars and policy makers affiliated with IFRI are interested in understanding the role of formal and informal institutions in enhancing livelihoods and adaptive capacity of peoples, conserving biodiversity, and promoting greater sustainability in carbon sequestration. IFRI's goal is to carry out rigorous research that can help policy makers and forest users design and implement improved evidence-based forest policies. IFRI comprises partner collaborating research institutes in North America, Latin America, Asia and Africa. IFRI utilizes the Institutional Analysis and Development (IAD) framework, created at the Workshop in Political Theory and Policy Analysis at Indiana University by Elinor Ostrom and her colleagues.
Steven C. Hackett is an American economist, and Professor of Economics at Humboldt State University (HSU), known for his contributions to the fields of environmental and natural resources economics.
Institutional analysis is that part of the social sciences which studies how institutions—i.e., structures and mechanisms of social order and cooperation governing the behavior of two or more individuals—behave and function according to both empirical rules and also theoretical rules. This field deals with how individuals and groups construct institutions, how institutions function in practice, and the effects of institutions on each other, on individuals, societies and the community at large.
The O'Neill School of Public and Environmental Affairs is one of the undergraduate and graduate schools of Indiana University, and is the largest public policy and environmental studies school of its kind in the United States. Founded in 1972, as the Indiana University School of Public and Environmental Affairs, it was the first school to combine public management, policy, and administration with the environmental sciences. The school was founded on the IU Bloomington campus, and today also has a campus at Indiana University – Purdue University Indianapolis (IUPUI). O'Neill School Bloomington is the top ranked school of public affairs in the United States. The school received a facelift and expansion when the Paul O'Neill Graduate Center opened for classes in the Spring 2017 semester due to the growing influx of students. On March 4, 2019, the name was changed to the O'Neill School of Public and Environmental Affairs, in honor of alumnus Paul H. O'Neill, who served as the United States Secretary of the Treasury in 2001–2002.
The following outline is provided as an overview of and topical guide to libertarianism, a political philosophy that upholds liberty as its principal objective. As a result, libertarians seek to maximize autonomy and freedom of choice, emphasizing political freedom, voluntary association and the primacy of individual judgment.
Daniel W. Bromley is an economist, the former Anderson-Bascom Professor of applied economics at the University of Wisconsin–Madison, and since 2009, Emeritus Professor. His research in institutional economics explains the foundations of property rights, natural resources and the environment; and economic development. He has been editor of the journal Land Economics since 1974.
The term "knowledge commons" refers to information, data, and content that is collectively owned and managed by a community of users, particularly over the Internet. What distinguishes a knowledge commons from a commons of shared physical resources is that digital resources are non-subtractible; that is, multiple users can access the same digital resources with no effect on their quantity or quality.
Lee J. Alston is the Ostrom Chair, Professor of Economics and Law, and Director of the Ostrom Workshop at Indiana University. He is also a Research Associate at the National Bureau of Economic Research. On August 6, 2014, Alston was appointed director of the Vincent and Elinor Ostrom Workshop in Political Theory and Policy Analysis at Indiana University, Bloomington, from which he received his B.A. in 1973. His research has focused on institutions and contracts and their role in influencing rural land use in the US and Brazil. In 2012 Alston was awarded a ClioCan award by the Cliometric Society for Exceptional Support to the Field of Cliometrics.
Sue Crawford, née Sue Steinhauser, is a politician from the U.S. state of Nebraska. She represents District 45, which includes the city of Bellevue and Offutt Air Force Base, in the Nebraska Legislature.
The Institutional Analysis and Development framework (IAD) was developed by Elinor Ostrom, an American political scientist, also known as the first woman to receive the Nobel Memorial Prize in Economic Sciences in 2009. The IAD relates a set of concepts to help in the analysis of commons, such as fishery stocks, woodlands. Ostrom explored which institutional structures support arrangements that handle those resource stocks in a sustainable way, balancing individuals' use with the interest of a wider public. Under the rational choice models, the IAD was devised in an attempt to explain and predict outcomes by formally exploring and documenting the governance structures, the actors' positions, and the informal and formal rules devised for individuals to extract resources from the commons resource. Thus, the IAD is a systematic method to document policy analysis functions similar to analytic technique commonly used in physical and social sciences and understand how institutions operate and change over a period of time.
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| Laureate of the Nobel Memorial Prize in Economics |
Served alongside: Oliver E. Williamson
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