Value Theory and Economic Progress: The Institutional Economics of J. Fagg Foster
In this volume Marc Tool presents a comprehensive presentation, review, and interpretation of]. Fagg Foster's contributions to institutional economics. The book is divided into two main sections dealing with institutional theory and applications of the theory respectively. As Tool mentions in his preface, most of Foster's contribution comes to us secondhand through the oral tradition, lecture notes, unpublished works, and the contributions of his students. Tool indicates that one of the intentions of the volume is to "generate ... an encompassing formulation of [Foster's] general theory of political economy" (p. xi). J. Fagg Foster was a student of C. E. Ayres, and Foster's contribution builds upon Ayres' contribution to institutional economics. In particular Foster was interested in extending the Ayresian synthesis of Thorstein Veblen's analysis of the economy with John Dewey's instrumental logic. Since much of this is familiar to readers of theJEI this review will focus on Tool's discussion of Foster's unique contributions to the development of the Veblen-Ayres tradition within institutional economic theory. Foster distinguished his position from that of Veblen by rejecting the "mores principle" as a sufficient explanation for institutions. The mores principle "that people are products of culture, is descriptively correct" (p. 25). And this is reflected in the institutional structure. "Habits of action and thought constitute the established behavior patterns of individuals and therefore constitute the structure of institutions" (p. 25; quoting Foster). However, Foster's position stresses that new behavior and alterations of habit emerge as the result of individuals engaged in purposeful problem-solving behavior. This is not a spontaneous phenomenon but instead the result of "conceptual comprehension of, and behavioral responses to, demonstrated inadequacies present in current institutional structure; and some conscious deliberative election of alternative structure or behavior" (p. 26). Accordingly, problem solving and institutional adjustment require value judgments. Thus the book contains a long and detailed discussion of Foster's version of instrumental value theory. Foster's framework suggests that the employment of instrumental value theory at both the individual and social level is necessary for effective pro-