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Impact of Geography on Institutions in Agricultural and Nomadic Societies

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  • Zhou, Haiwen

Abstract

How geography affects the choice of institutions is studied in a theoretical model. In this model, nations are located around a circle. Rulers compete through choosing tax rates, the level of military spending, and the degree of formality of institutions. Geographic condition is captured by population density. It is shown that societies with higher population densities choose lower tax rates, establish more formal institutions, and give government officials lower levels of autonomies than those with lower population densities do. A higher level of external threats induces a ruler to choose a higher level of autonomy for officials. The model is illustrated by comparing institutions of agricultural and nomadic regimes in ancient China.

Suggested Citation

  • Zhou, Haiwen, 2025. "Impact of Geography on Institutions in Agricultural and Nomadic Societies," MPRA Paper 126510, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:126510
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    References listed on IDEAS

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    17. Haiwen Zhou, 2023. "Unification and Division: A Theory of Institutional Choices in Imperial China," Annals of Economics and Finance, Society for AEF, vol. 24(1), pages 13-37, May.
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    Keywords

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    JEL classification:

    • N45 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Asia including Middle East
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • P50 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - General

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