A Dynamic Theory of Endogenous Political Institutions
ISBN
0-262-05081-1
Type
book section
Date Issued
2006
Author(s)
Sunde, Uwe
;
Cervellati, Matteo
;
Fortunato, Piergiuseppe
Abstract
This paper studies how the dynamics of democratization influence
the design of constitutions and political institutions. The process of
democratization is shown to be determined by inequality in economic
and political power, as well as the dynamics of economic development, while, at the same time, democratic structures shape the economic environment. We show that different scenarios of political development can arise and lead to different constitutional designs. These shape in particular the relative importance of efficiency and redistribution in the activities of the public sector, depending on the relative power and interests of different groups during the transition. Constitutions written under a strong capitalistic elite are characterized by little redistribution and a small size of the government. The reverse holds for strongly landed and less entrenched elites. The various implications of the model are shown to be in line with empirical and historical evidence.
the design of constitutions and political institutions. The process of
democratization is shown to be determined by inequality in economic
and political power, as well as the dynamics of economic development, while, at the same time, democratic structures shape the economic environment. We show that different scenarios of political development can arise and lead to different constitutional designs. These shape in particular the relative importance of efficiency and redistribution in the activities of the public sector, depending on the relative power and interests of different groups during the transition. Constitutions written under a strong capitalistic elite are characterized by little redistribution and a small size of the government. The reverse holds for strongly landed and less entrenched elites. The various implications of the model are shown to be in line with empirical and historical evidence.
Language
English
Keywords
Endogenous Constitutions
Democratic Transition
Public Goods
Redistribution
HSG Classification
contribution to education
Refereed
Yes
Book title
Institutions, Development, and Economic Growth
Publisher
MIT Press
Publisher place
Cambridge MA, USA
Volume
2006
Number
Chapter 8
Start page
215
End page
248
Pages
34
Subject(s)
Division(s)
Eprints ID
64782