A Conceptual Framework for Understanding Critical Transitions / Lee J. Alston, Marcus André Melo, Bernardo Mueller, Carlos Pereira.

Format:

Book

Author/Creator:

Alston, Lee J.

Contributor:

National Bureau of Economic Research.

Melo, Marcus André.

Mueller, Bernardo.

Pereira, Carlos.

Series:

Working Paper Series (National Bureau of Economic Research) no. w22144.

NBER working paper series no. w22144

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2016.

Summary:

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.

Notes:

Print version record

April 2016.