IDEAS home Printed from https://ideas.repec.org/p/zbw/vfsc21/242422.html
   My bibliography  Save this paper

Reform Paths and Institutional Resilience

Author

Listed:
  • Buchen, Clemens

Abstract

Broadly speaking, institutional reformers decide about the sequencing of types of reforms, either addressing institutional quality or macroeconomic stability. This paper develops a dynamic population game, in which agents play a simple anonymous-exchange game of cooperating or defecting. Agents switch to the strategy with higher expected payoff. Reformers can affect the payoff structure of the stage game in order to maximize the number of cooperators in the population by either enacting legal reform (rule of law) or focusing on the macro outlook of the economy facilitating cooperation. Reform is cumulative and starts from initial conditions. Reform effort per period of time is capped. On the basis of the theoretical model the paper makes predictions under which conditions which types of reforms should be enacted first and under which conditions reform will not be successful. In addition, the notion of institutional resilience is introduced as a minimum threshold of legal quality, which allows the population to better withstand exogenous shocks.

Suggested Citation

  • Buchen, Clemens, 2021. "Reform Paths and Institutional Resilience," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242422, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc21:242422
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/242422/1/vfs-2021-pid-50255.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gérard Roland, 2004. "Transition and Economics: Politics, Markets, and Firms," MIT Press Books, The MIT Press, edition 1, volume 1, number 026268148x, December.
    2. Dimiter Ialnazov & Nikolay Nenovsky, 2011. "A Game Theory Interpretation of the Post-Communist Evolution," Journal of Economic Issues, Taylor & Francis Journals, vol. 45(1), pages 41-56.
    3. Léonard,Daniel & Long,Ngo van, 1992. "Optimal Control Theory and Static Optimization in Economics," Cambridge Books, Cambridge University Press, number 9780521331586, November.
    4. Nunn, Nathan, 2007. "Historical legacies: A model linking Africa's past to its current underdevelopment," Journal of Development Economics, Elsevier, vol. 83(1), pages 157-175, May.
    5. Friedman, Daniel, 1991. "Evolutionary Games in Economics," Econometrica, Econometric Society, vol. 59(3), pages 637-666, May.
    6. Daron Acemoglu & Matthew O. Jackson, 2015. "History, Expectations, and Leadership in the Evolution of Social Norms," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 82(2), pages 423-456.
    7. Nunn, Nathan, 2007. "Historical legacies: A model linking Africa's past to its current underdevelopment," Scholarly Articles 33077823, Harvard University Department of Economics.
    8. Lahkar, Ratul & Sandholm, William H., 2008. "The projection dynamic and the geometry of population games," Games and Economic Behavior, Elsevier, vol. 64(2), pages 565-590, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Clemens Buchen, 2023. "Institutional reform paths," Economics and Politics, Wiley Blackwell, vol. 35(3), pages 1099-1121, November.
    2. Maseland, Robbert, 2021. "Contingent determinants," Journal of Development Economics, Elsevier, vol. 151(C).
    3. Alexander Moradi, 2008. "Confronting colonial legacies-lessons from human development in Ghana and Kenya, 1880-2000," Journal of International Development, John Wiley & Sons, Ltd., vol. 20(8), pages 1107-1121.
    4. Liu, Xianda & Hou, Wenxuan & Main, Brian G.M., 2022. "Anti-market sentiment and corporate social responsibility: Evidence from anti-Jewish pogroms," Journal of Corporate Finance, Elsevier, vol. 76(C).
    5. Abban, Stanley, 2020. "The impact of institutions and infrastructure on intra-regional trade: The Economic Community of West African States," MPRA Paper 104382, University Library of Munich, Germany.
    6. Sambit Bhattacharyya, 2009. "Root Causes of African Underdevelopment," Journal of African Economies, Centre for the Study of African Economies, vol. 18(5), pages 745-780, November.
    7. Mertikopoulos, Panayotis & Sandholm, William H., 2018. "Riemannian game dynamics," Journal of Economic Theory, Elsevier, vol. 177(C), pages 315-364.
    8. José de Sousa & Julie Lochard, 2008. "Trade and colonial status," Post-Print halshs-00323598, HAL.
    9. Naudé, Wim, 2019. "Three Varieties of Africa’s Industrial Future," IZA Discussion Papers 12678, Institute of Labor Economics (IZA).
    10. Keith W. Glaister & Nigel Driffield & Yupu Lin, 2020. "Foreign Direct Investment to Africa: Is There a Colonial Legacy?," Management International Review, Springer, vol. 60(3), pages 315-349, June.
    11. Sameeksha Desai & Zoltan J. Acs, 2007. "A Theory of Destructive Entrepreneurship," Jena Economics Research Papers 2007-085, Friedrich-Schiller-University Jena.
    12. Reinoud Joosten & Berend Roorda, 2008. "Generalized projection dynamics in evolutionary game theory," Papers on Economics and Evolution 2008-11, Philipps University Marburg, Department of Geography.
    13. Bouwe R. Dijkstra, 2022. "Payments from Households to Distant Polluting Firms," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(3), pages 681-715, July.
    14. Calvi, Rossella & Mantovanelli, Federico G., 2018. "Long-term effects of access to health care: Medical missions in colonial India," Journal of Development Economics, Elsevier, vol. 135(C), pages 285-303.
    15. Tuki, Daniel, 2023. "Pastoral conflicts and (dis)trust: Evidence from Nigeria using an instrumental variable approach," Discussion Papers, Research Unit: Migration, Integration, Transnationalization SP VI 2023-101, WZB Berlin Social Science Center.
    16. Roberto Ganau, 2017. "Institutions and economic growth in Africa: a spatial econometric approach," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 34(3), pages 425-444, December.
    17. Anirudh Shingal, 2016. "Colonial legacy, services trade and LDCs," RSCAS Working Papers 2016/70, European University Institute.
    18. Sandholm, William H., 2015. "Population Games and Deterministic Evolutionary Dynamics," Handbook of Game Theory with Economic Applications,, Elsevier.
    19. Fan Cui & Ying Ge & Fengchun Jing, 2013. "The Effects of the Labor Contract Law on the Chinese Labor Market," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 10(3), pages 462-483, September.
    20. Daniel Aparicio-Pérez & Jordi Ripollés, 2024. "Disentangling the heterogeneous effect of natural resources on economic growth," Working Papers 2024/02, Economics Department, Universitat Jaume I, Castellón (Spain).

    More about this item

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:zbw:vfsc21:242422. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/vfsocea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.