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Persistence of Power, Elites, and Institutions

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Daron Acemoglu
James A. Robinson

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Abstract

We construct a model to study the implications of changes in political institutions for economic institutions. A change in political institutions alters the distribution of de jure political power, but creates incentives for investments in de facto political power to partially or even fully offset change in de jure power. The model can imply a pattern of captured democracy, whereby a democratic regime may survive but choose economic institutions favoring an elite. The model provides conditions under which economic or policy outcomes will be invariant to changes in political institutions, and economic institutions themselves will persist over time. (JEL D02, D72)

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File URL: http://hdl.handle.net/10.1257/aer.98.1.267
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Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 98 (2008)
Issue (Month): 1 (March)
Pages: 267-93
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Handle: RePEc:aea:aecrev:v:98:y:2008:i:1:p:267-93

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  1. Roland Bénabou, 2003. "Inequality, Technology, and the Social Contract," Working Papers 141, Princeton University, Woodrow Wilson School of Public and International Affairs, Discussion Papers in Economics.. [Downloadable!]
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  2. Roland Benabou, 2000. "Unequal Societies: Income Distribution and the Social Contract," American Economic Review, American Economic Association, vol. 90(1), pages 96-129, March. [Downloadable!] (restricted)
  3. Davide Ticchi & Andrea Vindigni, 2002. "Endogenous Constitutions," Economics Working Papers 896, Department of Economics and Business, Universitat Pompeu Fabra, revised Sep 2005. [Downloadable!]
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  4. Sebastián Mazzuca & James A. Robinson, 2006. "Political Conflict and Power-sharing in the Origins of Modern Colombia," NBER Working Papers 12099, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Whatley, Warren C, 1985. "A History of Mechanization in the Cotton South: The Institutional Hypothesis," The Quarterly Journal of Economics, MIT Press, vol. 100(4), pages 1191-1215, November. [Downloadable!] (restricted)
  6. Milgrom, Paul & Roberts, John, 1994. "Comparing Equilibria," American Economic Review, American Economic Association, vol. 84(3), pages 441-59, June. [Downloadable!] (restricted)
  7. Dixit, Avinash K, 1989. "Entry and Exit Decisions under Uncertainty," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 620-38, June. [Downloadable!] (restricted)
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  8. Daron Acemoglu & James A. Robinson, 2001. "A Theory of Political Transitions," American Economic Review, American Economic Association, vol. 91(4), pages 938-963, September. [Downloadable!] (restricted)
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  9. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December. [Downloadable!] (restricted)
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  10. Esteban, J. & Ray, D., 1999. "Collective Action and Group Size Paradox," Papers 23, El Instituto de Estudios Economicos de Galicia Pedro Barrie de la Maza.
  11. Heinicke Craig, 1994. "African-American Migration and Mechanized Cotton Harvesting, 1950-1960," Explorations in Economic History, Elsevier, vol. 31(4), pages 501-520, October. [Downloadable!] (restricted)
  12. Grossman, Gene M & Helpman, Elhanan, 1996. "Electoral Competition and Special Interest Politics," Review of Economic Studies, Blackwell Publishing, vol. 63(2), pages 265-86, April. [Downloadable!] (restricted)
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  13. Daron Acemoglu & James A. Robinson, 2000. "Why Did The West Extend The Franchise? Democracy, Inequality, And Growth In Historical Perspective," The Quarterly Journal of Economics, MIT Press, vol. 115(4), pages 1167-1199, November. [Downloadable!] (restricted)
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  14. Roger Lagunoff, 2006. "Dynamic Stability and Reform of Political Institutions," Levine's Bibliography 784828000000000051, UCLA Department of Economics. [Downloadable!]
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  15. Stephen Coate & Stephen Morris, 1999. "Policy Persistence," American Economic Review, American Economic Association, vol. 89(5), pages 1327-1336, December. [Downloadable!] (restricted)
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  16. Casey B. Mulligan & Kevin K. Tsui, 2006. "Political Competitiveness," NBER Working Papers 12653, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  17. David, Paul A, 1985. "Clio and the Economics of QWERTY," American Economic Review, American Economic Association, vol. 75(2), pages 332-37, May. [Downloadable!] (restricted)
  18. Casey B. Mulligan & Ricard Gil & Xavier Sala-i-Martin, 2004. "Do Democracies Have Different Public Policies than Nondemocracies?," Journal of Economic Perspectives, American Economic Association, vol. 18(1), pages 51-74, Winter. [Downloadable!] (restricted)
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  19. Jack, William & Lagunoff, Roger, 2006. "Dynamic enfranchisement," Journal of Public Economics, Elsevier, vol. 90(4-5), pages 551-572, May. [Downloadable!] (restricted)
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  20. Matsuyama, Kiminori, 1991. "Increasing Returns, Industrialization, and Indeterminacy of Equilibrium," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 617-50, May. [Downloadable!] (restricted)
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  21. Krugman, Paul, 1991. "History versus Expectations," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 651-67, May. [Downloadable!] (restricted)
  22. repec:cup:cbooks:9780521671422 is not listed on IDEAS
  23. Wright, Gavin, 1999. "The Civil Rights Revolution as Economic History," The Journal of Economic History, Cambridge University Press, vol. 59(02), pages 267-289, June. [Downloadable!]
  24. Daron Acemoglu & Simon Johnson & James A. Robinson, 2002. "Reversal Of Fortune: Geography And Institutions In The Making Of The Modern World Income Distribution," The Quarterly Journal of Economics, MIT Press, vol. 117(4), pages 1231-1294, November. [Downloadable!] (restricted)
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  25. Richard Easterlin, 1960. "Interregional Differences in Per Capita Income, Population, and Total Income, 1840-1950," NBER Chapters, in: Trends in the American Economy in the Nineteenth Century, pages 73-140 National Bureau of Economic Research, Inc. [Downloadable!]
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