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Institutionalization and Institutional Evolution: A Model of Selecting Government Officials in Ancient China

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  • Zhou, Haiwen

Abstract

Evolution of institutions in selecting government officials in ancient China reflected efficiency considerations and increased power concentration in the hands of the ruler. Selecting government officials in ancient China became more rule-based over time, and standardization and centralization were some key features of this process. In this dynamic model, a higher volume of transactions shown as the number of candidates needed to be evaluated leads to institutionalization which has a higher fixed cost but a lower marginal cost in processing each transaction. In the steady state, a ruler with a more encompassing interest chooses a higher level of institutionalization. The impact of a change in the level of elite power on the level of institutionalization is sensitive to the relative power of state versus society.

Suggested Citation

  • Zhou, Haiwen, 2025. "Institutionalization and Institutional Evolution: A Model of Selecting Government Officials in Ancient China," MPRA Paper 126588, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:126588
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    References listed on IDEAS

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    1. Martin C. McGuire & Mancur Olson, 1998. "The Economics of Autocracy and Majority Rule: The Invisible Hand and the Use of Force," International Economic Association Series, in: Silvio Borner & Martin Paldam (ed.), The Political Dimension of Economic Growth, chapter 3, pages 38-73, Palgrave Macmillan.
    2. Haiwen Zhou, 2021. "Culture, institutions, and long‐run performance," Pacific Economic Review, Wiley Blackwell, vol. 26(3), pages 372-391, August.
    3. Greif, Avner & Laitin, David D., 2004. "A Theory of Endogenous Institutional Change," American Political Science Review, Cambridge University Press, vol. 98(4), pages 633-652, November.
    4. Masahiko Aoki, 2013. "Endogenizing institutions and institutional changes," Chapters, in: Comparative Institutional Analysis, chapter 16, pages 267-297, Edward Elgar Publishing.
    5. Haiwen Zhou, 2004. "The division of labor and the extent of the market," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 24(1), pages 195-209, July.
    6. 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.
    7. Haiwen Zhou, 2009. "Population Growth And Industrialization," Economic Inquiry, Western Economic Association International, vol. 47(2), pages 249-265, April.
    8. Haiwen Zhou, 2012. "Internal Rebellions and External Threats: A Model of Government Organizational Forms in Ancient China," Southern Economic Journal, Southern Economic Association, vol. 78(4), pages 1120-1141, April.
    9. Ting Chen & James Kai-sing Kung & Chicheng Ma, 2020. "Long Live Keju! The Persistent Effects of China’s Civil Examination System," The Economic Journal, Royal Economic Society, vol. 130(631), pages 2030-2064.
    10. Chris Bidner & Patrick Francois, 2011. "Cultivating Trust: Norms, Institutions and the Implications of Scale," Economic Journal, Royal Economic Society, vol. 121(555), pages 1097-1129, September.
    11. Haiwen Zhou, 2012. "Internal Rebellions and External Threats: A Model of Government Organizational Forms in Ancient China," Southern Economic Journal, John Wiley & Sons, vol. 78(4), pages 1120-1141, April.
    12. Justin Yifu Lin, 1989. "An Economic Theory of Institutional Change: Induced and Imposed Change," Cato Journal, Cato Journal, Cato Institute, vol. 9(1), pages 1-33, Spring/Su.
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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
    • P40 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - General

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