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A Lipsetian Theory of Institutional Change

Author

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  • Raouf Boucekkine

    (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

  • Paolo G. Piacquadio

    (UiO - University of Oslo)

  • Fabien Prieur

    (LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée - UM1 - Université Montpellier 1 - UPVM - Université Paul-Valéry - Montpellier 3 - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier)

Abstract

The paper addresses the role of education policies for institutional change. We focus on two contrasting effects of education and human capital accumulation. On the one side, education prompts economic growth and increases the wealth managed by an autocratic elite. On the other side, education increases the awareness of citizens (capturing their reluctance to accept a dictatorship and their labor-market aspirations) and requires the elite to devote more resources to income redistribution. Along the lines of this trade-off, our theory provides a Lipsetian explanation of the positive relationship between education and institutional change, the positive relationship between development and institutional change, and the negative relationship between inequality and institutional change. Furthermore, we obtain new insights on the natural resources curse hypothesis and on the design of development aid programs.

Suggested Citation

  • Raouf Boucekkine & Paolo G. Piacquadio & Fabien Prieur, 2015. "A Lipsetian Theory of Institutional Change," Working Papers hal-02797064, HAL.
    • Handle: RePEc:hal:wpaper:hal-02797064
    Note: View the original document on HAL open archive server: https://shs.hal.science/hal-02797064v3
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    References listed on IDEAS

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