Research on determinants of economic and political institutions

2018 Fiscal Year Final Research Report

• Project/Area Number: 15K21290
• Research Category: Grant-in-Aid for Young Scientists (B)
• Allocation Type: Multi-year Fund
• Research Field: Economic theory; Economic policy
• Research Institution: Osaka City University
• Principal Investigator: Okazawa Ryosuke 大阪市立大学, 大学院経済学研究科, 准教授 (30707998)
• Project Period (FY): 2015-04-01 – 2019-03-31
• Keywords: 制度 / 経済成長

Outline of Final Research Achievements

This research analyzes determinants of institutions by using
a model in which a self-interested ruler chooses an institution that constrains his or her policy choice.
I show that inequality affects the ruler's trade-off between the expropriation of citizens' wealth and his or her hold on power. Substantial inequality among citizens makes support for the ruler inelastic with respect to his or her institutional choice. The ruler therefore chooses an extractive institution, which impedes investment and growth. These results provide an explanation for the negative relationship between inequality and growth as well as the negative relationship between inequality and institutional quality, both of which are observed in nondemocratic countries.

Free Research Field

経済学

Academic Significance and Societal Importance of the Research Achievements

制度と経済発展の関係については近年理論的にも実証的にも研究の蓄積が進んでおり、経済成長の問題を考える上で制度的要因の重要性については一定のコンセンサスが得られている。
一方で、そもそも制度の差異がどこから生まれるのかという問題はまだ未発展の研究分野であるが、本研究では、その決定要因の1つとして経済的不平等の影響について理論的に考察し、簡単な実証的な裏付けを得ることにも成功している。