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1 results

  • 9 - Lifestyles and the Natural Environment

  • from Part III - Unified Growth Theory
  • Gregory Ponthiere, Université Catholique de Louvain, Belgium
  • Book:
    The Economics of the Long Period
    Published online:
    11 August 2022
    Print publication:
    25 August 2022, pp 204-223

  • Summary

    This chapter develops a microfounded model of institutional changes and uses it to examine the joint production of institutions and economic output. In that model, agents must decide to participate in the political life of the city, participation whose level affects the level of the quality of institutions, as well as the possibilities of long-run economic expansion. It is shown that there exists a critical threshold for the quality of institutions below which agents do not participate to the political life, and above which they do participate. It is also shown that the presence of political participation does not suffice to bring immediate economic take-off: several generations of citizens with positive political participation are needed to achieve economic take-off.