Institutions are not equally able to reduce scarcity and uncertainty. If institutions were classified from this point of view we would acquire a new analyticaltool to examine institutions in the past the present or the future. Scarcity and uncertainty appear continuously and institutions can manage them only by a greater increase in individual responsibility. However, this also increases the danger of the disintegration of community. We can see this application in practice by surveying the Hungarian pension system over the past 100 years.

Journal of Economic Literature (JEL) classification: A11, B52, G18, G23