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A Conceptual Framework for Understanding Critical Transitions

Author

Listed:
  • Lee J. Alston
  • Marcus André Melo
  • Bernardo Mueller
  • Carlos Pereira

Abstract

Critical transitions for a country are historical periods when the powerful organizations in a country shift from one set of beliefs about how institutions (the formal and informal rules of the game) will affect outcomes to a new set of beliefs. Critical transitions can lead a country toward more openness politically and economically or toward a more exclusionary society. Economic and political development is contextual; that is, there is no recipe. Periods of relative persistence are the norm with changes in institutions at the margin. We develop a framework consisting of several interconnected relatively unexplored concepts that we first define in a static context and then utilize to show how they produce a dynamic of institutional change or persistence. The key concepts include: windows of opportunity, beliefs, and leadership. Our major contribution is wedding the concepts of windows of opportunity, beliefs, and leadership to the dominant network, institutions, and economic and political outcomes to form a dynamic. We apply the framework illustratively to understand economic and political development in Argentina over the past 100 years.

Suggested Citation

  • Lee J. Alston & Marcus André Melo & Bernardo Mueller & Carlos Pereira, 2016. "A Conceptual Framework for Understanding Critical Transitions," NBER Working Papers 22144, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:22144
    Note: DAE DEV LE POL
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    References listed on IDEAS

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    JEL classification:

    • N4 - Economic History - - Government, War, Law, International Relations, and Regulation
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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