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A Lipsetian Theory of Institutional Change

Author

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  • Raouf Boucekkine

    (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - ECM - Ecole Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique - AMU - Aix Marseille Université - EHESS - École des hautes études en sciences sociales)

  • Paolo Piacquadio

    (UiO - University of Oslo)

  • Fabien Prieur

    (LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée - UM1 - Université Montpellier 1 - UM3 - Université Paul-Valéry - Montpellier 3 - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - INRA Montpellier - Institut national de la recherche agronomique [Montpellier] - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier)

Abstract

The paper addresses the role of education policies for institutional change. We focus on two contrasting effects of education and human capital accumulation. On the one side, education prompts economic growth and increases the wealth managed by an autocratic elite. On the other side, education increases the awareness of citizens (capturing their reluctance to accept a dictatorship and their labor-market aspirations) and requires the elite to devote more resources to income redistribution. Along the lines of this trade-off, our theory provides a Lipsetian explanation of the positive relationship between education and institutional change, the positive relationship between development and institutional change, and the negative relationship between inequality and institutional change. Furthermore, we obtain new insights on the natural resources curse hypothesis and on the design of development aid programs.

Suggested Citation

  • Raouf Boucekkine & Paolo Piacquadio & Fabien Prieur, 2015. "A Lipsetian Theory of Institutional Change," Working Papers halshs-01120069, HAL.
  • Handle: RePEc:hal:wpaper:halshs-01120069
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-01120069v2
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    References listed on IDEAS

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    1. Edward Glaeser & Giacomo Ponzetto & Andrei Shleifer, 2007. "Why does democracy need education?," Journal of Economic Growth, Springer, vol. 12(2), pages 77-99, June.
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    6. Gylfason, Thorvaldur, 2001. "Natural resources, education, and economic development," European Economic Review, Elsevier, vol. 45(4-6), pages 847-859, May.
    7. Raouf Boucekkine & Fabien Prieur & Klarizze Puzon, 2014. "On Political Regime Changes in Arab Countries," AMSE Working Papers 1401, Aix-Marseille School of Economics, France, revised 22 Jan 2014.
    8. Acemoglu,Daron & Robinson,James A., 2009. "Economic Origins of Dictatorship and Democracy," Cambridge Books, Cambridge University Press, number 9780521671422.
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    12. Castelló-Climent, Amparo, 2008. "On the distribution of education and democracy," Journal of Development Economics, Elsevier, vol. 87(2), pages 179-190, October.
    13. Robert J. Barro, 1999. "Determinants of Democracy," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages 158-183, December.
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    15. Castelló-Climent, Amparo & Mukhopadhyay, Abhiroop, 2013. "Mass education or a minority well educated elite in the process of growth: The case of India," Journal of Development Economics, Elsevier, vol. 105(C), pages 303-320.
    16. Michael Alexeev & Robert Conrad, 2009. "The Elusive Curse of Oil," The Review of Economics and Statistics, MIT Press, vol. 91(3), pages 586-598, August.
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    Keywords

    human capital; democratization; Lipset’s theory; natural resource curse;

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