Institutions

Institutions - 1 Lionel Robbins Lectures, London School...

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Unformatted text preview: 1 Lionel Robbins Lectures, London School Economics, Feb.23-25 Understanding Institutions Daron Acemoglu (based on joint work with Simon Johnson and James Robinson) 2 The Argument z Institutions---organization of society, rules of the game--- are a major determinant of economic performance and a key factor in understanding the vast cross-country differences in prosperity. z Institutions are not exogenous, but there are potential sources of exogenous variation in history. Example: the natural experiment of European colonization. Use of history to estimate the causal effect of institutions on growth. z Institutions are not typically chosen for the good of society, but imposed by groups with political power for their economic consequences. Understanding institutions necessitates understanding the dynamics of political power. Institutional reform possible, but many potential pitfalls; z e.g., dealing with the symptoms rather than deep causes. 3 Plan of the lectures (1) z Lecture 1: Institutional Causes of Economic Performance. Sources of prosperity. What are institutions? Brief discussion. Sources of cross-country differences in prosperity. Geography versus institutions and the identification problem. Learning from the Korean experiment. The colonial experiment and the Reversal of Fortune. Reassessing geography versus institutions. Are British colonies different? The role of culture. 4 Plan of the lectures (2) z Lecture 2: Towards a Theory of Institutions. Different meta-theories: efficiency, history, ideology and social conflict. Economic institutions, political institutions and political power Historical examples: 1. Land relations in the Dutch East Indies 2. Early financial development in the U.S. and Mexico 3. Price regulation in Ghana, Kenya and Colombia Dynamics of political power and political institutions. A theory of institutions. Historical examples: 1. Atlantic trade and rise of constitutional regimes. 2. Emergence of mass democracy in Western Europe. 5 Plan of the lectures (3) z Lecture 3: Institutions, Prosperity and Change Estimating the causal effect of institutions on income per capita. z Making further use of the colonial experience. z Reassessing geography, culture and religion. From the long run to the short run: the effect of institutions on volatility, instability and crises. Institutions and policies. Institutional change; putting the theory to work Institutional change; pitfalls: z The seesaw effect: dealing with the symptoms not causes. z Ignoring internal dynamics. Where to go from here? 6 Lecture 1: Institutional Causes of Economic Performance z Plan of Lecture 1: Sources of prosperity....
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This note was uploaded on 04/11/2011 for the course GEOG 1123 taught by Professor Neely/turner during the Spring '08 term at Arkansas.

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Institutions - 1 Lionel Robbins Lectures, London School...

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