Premium
Institutional Stickiness and the New Development Economics
Author(s) -
Boettke Peter J.,
Coyne Christopher J.,
Leeson Peter T.
Publication year - 2008
Publication title -
american journal of economics and sociology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.199
H-Index - 38
eISSN - 1536-7150
pISSN - 0002-9246
DOI - 10.1111/j.1536-7150.2008.00573.x
Subject(s) - institution , indigenous , institutional change , institutional economics , function (biology) , core (optical fiber) , economics , political science , positive economics , sociology , neoclassical economics , social science , public administration , computer science , ecology , telecommunications , evolutionary biology , biology
A bstract . Research examining the importance of path dependence and culture for institutions and development tells us that “history matters,” but not how history matters. To provide this missing “how,” we provide a framework for understanding institutional “stickiness” based on the regression theorem. The regression theorem maintains that the stickiness, and therefore likely success, of any proposed institutional change is a function of that institution's status in relationship to indigenous agents in the previous time period. This framework for analyzing institutional stickiness creates the core of what we call the New Development Economics. Historical cases of postwar reconstruction and transition efforts provide evidence for our claim.