When a ruling elite is unable to commit to future growth-promoting policies, it may cede political power to a broader segment of the public, as in North and Weingast (1989). Alternatively, as we show in this paper, commitment may be achieved by moving in the opposite direction: installing a...

This paper seeks to provide an improved understanding of the origins of democracy. It begins by developing a theoretical model to demonstrate how exogenous economic conditions can influence both the incentives to establish democratic institutions and the likelihood that such institutions...

Scholars typically regard the “rule of law” – a stable and predictable process by which laws are implemented, enforced, and changed – as a cornerstone of good governance and a key factor supporting economic growth. Yet establishing the rule of law involves a tradeoff: ex ante commitment...