IDEAS home Printed from https://ideas.repec.org/a/ucp/jlawec/v51y2008i4p641-666.html
   My bibliography  Save this article

Sovereignty, Credible Commitments, and Economic Prosperity on American Indian Reservations

Author

Listed:
  • Terry L. Anderson
  • Dominic P. Parker

Abstract

American Indian reservations are islands of poverty in a sea of wealth. Because this poverty cannot be explained solely by natural resource, physical, and human capital constraints, institutions are likely to be part of the explanation. One of the institutional variables is the sovereign power of tribes, which allows tribal governments to act opportunistically. The potential for such opportunistic behavior can thwart economic development if tribes are unable to make credible commitments to stable contract enforcement. One avenue for credible commitments is Public Law 280, which required some tribes to turn judicial jurisdiction over civil disputes to the states in which they reside. Using data for 1969-99, we find that per capita income for American Indians on reservations subject to state jurisdiction grew significantly more than it did for Indians who were not. (c) 2008 by The University of Chicago. All rights reserved.

Suggested Citation

  • Terry L. Anderson & Dominic P. Parker, 2008. "Sovereignty, Credible Commitments, and Economic Prosperity on American Indian Reservations," Journal of Law and Economics, University of Chicago Press, vol. 51(4), pages 641-666, November.
  • Handle: RePEc:ucp:jlawec:v:51:y:2008:i:4:p:641-666
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/590205
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, Oxford University Press, vol. 114(1), pages 83-116.
    2. Edward L. Glaeser & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2004. "Do Institutions Cause Growth?," Journal of Economic Growth, Springer, vol. 9(3), pages 271-303, September.
    3. 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.
    4. Trosper, Ronald L, 1978. "American Indian Relative Ranching Efficiency," American Economic Review, American Economic Association, vol. 68(4), pages 503-516, September.
    5. Anderson, Terry L & Lueck, Dean, 1992. "Land Tenure and Agricultural Productivity on Indian Reservations," Journal of Law and Economics, University of Chicago Press, vol. 35(2), pages 427-454, October.
    6. North, Douglass C. & Weingast, Barry R., 1989. "Constitutions and Commitment: The Evolution of Institutions Governing Public Choice in Seventeenth-Century England," The Journal of Economic History, Cambridge University Press, vol. 49(04), pages 803-832, December.
    7. Peter Kuhn & Arthur Sweetman, 2002. "Aboriginals as unwilling immigrants: Contact, assimilation and labour market outcomes," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(2), pages 331-355.
    8. Cornell, Stephen & Kalt, Joseph P., 2000. "Where's the glue? Institutional and cultural foundations of American Indian economic development," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 29(5), pages 443-470.
    9. Kydland, Finn E & Prescott, Edward C, 1977. "Rules Rather Than Discretion: The Inconsistency of Optimal Plans," Journal of Political Economy, University of Chicago Press, vol. 85(3), pages 473-491, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fernando M. Aragon, 2014. "Do better property rights improve local income?: Evidence from First Nations' treaties," Discussion Papers dp14-02, Department of Economics, Simon Fraser University.
    2. Anderson, Terry L. & Parker, Dominic P., 2009. "Economic development lessons from and for North American Indian economies," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(1), March.
    3. Dimitrova-Grajzl, Valentina & Grajzl, Peter & Guse, A. Joseph & Todd, Richard M., 2015. "Consumer credit on American Indian reservations," Economic Systems, Elsevier, vol. 39(3), pages 518-540.
    4. R. Warren Anderson, 2016. "Native American reservation constitutions," Constitutional Political Economy, Springer, vol. 27(4), pages 377-398, December.
    5. Aragón, Fernando M., 2015. "Do better property rights improve local income?: Evidence from First Nations' treaties," Journal of Development Economics, Elsevier, vol. 116(C), pages 43-56.
    6. Donna Feir & Rob Gillezeau & Maggie Jones, 2017. "The Slaughter of the North American Bison and Reversal of Fortunes on the Great Plains," Department Discussion Papers 1701, Department of Economics, University of Victoria.
    7. Akee, Randall & Jorgensen, Miriam & Sunde, Uwe, 2015. "Critical junctures and economic development – Evidence from the adoption of constitutions among American Indian Nations," Journal of Comparative Economics, Elsevier, vol. 43(4), pages 844-861.
    8. repec:eee:deveco:v:130:y:2018:i:c:p:17-32 is not listed on IDEAS
    9. Akee, Randall & Jorgensen, Miriam, 2014. "Property institutions and business investment on American Indian reservations," Regional Science and Urban Economics, Elsevier, vol. 46(C), pages 116-125.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:jlawec:v:51:y:2008:i:4:p:641-666. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division). General contact details of provider: http://www.journals.uchicago.edu/JLE/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.