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The S panish Origins of Extractive Institutions in the P hilippines
Author(s) -
Cruz Prince Christian
Publication year - 2014
Publication title -
australian economic history review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.493
H-Index - 16
eISSN - 1467-8446
pISSN - 0004-8992
DOI - 10.1111/aehr.12035
Subject(s) - conquest , incentive , economics , business , microeconomics , history , ancient history
Why did the S panish colonisers of the P hilippines establish extractive institutions? Using an explicit rational choice framework, the article examines the demand for institutions of S panish settlers during the conquest period. It provides a framework for analysing the incentive structure faced by individuals that lead them to demand, create, and preserve certain types of institutions. The article argues that extractive institutions were demanded and supplied to minimise the uncertainty brought by high mortality and the relatively low wealth in the P hilippines.