Hayekian economic infrastructure as a foundation for sustained prosperity

Rather than debate whether technical advances have created a "new economy," economists should focus on the more interesting and useful question: How d o we create the sort of environment in which innovation and the productive use of new technology thrive thereby creating economic prosperity? Such an environment is the product of government laying the appropriate infrastruct ure, manifested in the culture of the institutions it supports. This articl e discusses the features governments must incorporate into their institutio ns in order to build an economic infrastructure that promotes prosperity. ( JEL E52, E58, E65).