Peter J. Boettke is at the Department of Economics, George Mason University. Christopher J. Coyne is at the Department of Economics, West Virginia University. Peter T. Leeson is at the Department of Economics, George Mason University. We thank the Editor and an anonymous referee for helpful comments and suggestions. The financial support of the Earhart Foundation, the Oloffson Weaver Fellowship, the Mercatus Center, and the Kendrick Fund is also gratefully acknowledged.
Institutional Stickiness and the New Development Economics
Article first published online: 23 MAY 2008
© 2008 American Journal of Economics and Sociology, Inc.
American Journal of Economics and Sociology
Volume 67, Issue 2, pages 331–358, April 2008
How to Cite
Boettke, P. J., Coyne, C. J. and Leeson, P. T. (2008), Institutional Stickiness and the New Development Economics. American Journal of Economics and Sociology, 67: 331–358. doi: 10.1111/j.1536-7150.2008.00573.x
- Issue published online: 23 MAY 2008
- Article first published online: 23 MAY 2008
Abstract. 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.