The Political Economy of Institutional Change

David Bencek

Political and economic institutions are essential determinants of  development and growth. But analyzing the comparative statics of  different institutional frameworks cannot help us understand why in  some countries more beneficial sets of institutions emerge over the  course of time. For this purpose we need a theory that captures the dynamics of competing agents shaping their institutional environment while simultaneously being constrained by it. Eventually, this will help us comprehend gradual shifts of institutional settings and explain the variation we observe today.