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The Origins of Democracy: A Model with Application to Ancient Greece

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  • Fleck, Robert K
  • Hanssen, F Andrew

Abstract

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 the incentives to establish democratic institutions. The model predicts that democratic institutions will expand where they mitigate important time-inconsistency problems and, therefore, encourage investment. Exogenous conditions determine the magnitude of those time-inconsistency problems and, hence, the likelihood of democracy. A comparison of ancient Greek city-states suggests that the conditions under which democracy first emerged support the model. Other potential applications are discussed.

Suggested Citation

  • Fleck, Robert K & Hanssen, F Andrew, 2006. "The Origins of Democracy: A Model with Application to Ancient Greece," Journal of Law and Economics, University of Chicago Press, vol. 49(1), pages 115-146, April.
    • Handle: RePEc:ucp:jlawec:y:2006:v:49:i:1:p:115-46
    DOI: 10.1086/501088
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