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DFG Graduate Program Collective Decision-Making

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Research

P5: Institutional change and impact on economic and political outcomes

There is now a broad consensus that legal, political, economic and social institutions are essential not only for the wealth of nations, but also for sustainable decision-making. Understanding the emergence and creation of institutions as well as their effects on economic, political and social outcomes is thus of utmost concern in economics and political science.

On the one hand, this project will develop new theoretical models of institution formation and probe the implications of these models with experiments, survey and observational data. On the other hand, the project will analyze the effect of specific institutional settings on economic and political outcomes.

Objectives

  • To develop new models of institution formation and to test them in the lab, the field and with observational data.
  • To study the resilience of institutions and their acceptance by agents in changing environments.
  • To explore the impact of institutions on sustainable and inclusive policy making.

Suggested Readings

Andor, M., Lange, A. and S. Sommer (2022): “Fairness and the Support of Redistributive Environmental Policies,” Journal of Environmental Economics and Management, 114, 102682 (https://doi.org/10.1016/j.jeem.2022.102682).

Chattopadhyay, R. and E. Duflo (2004): "Women as Policy Makers: Evidence from a Randomized Policy Experiment in India," Econometrica 72(5), 1409-1443.

Clayton, A. (2015): "Women’s Political Engagement under Quota-Mandated Female Representation: Evidence from a Randomized Policy Experiment," Comparative Political Studies, 48(3), 333-369.

Curini, L. and A. Hino (2012): "Missing Links in Party-System Polarization: How Institutions and Voters Matter," Journal of Politics, 74, 460-473.

Franzese, R. J. (2002): “Electoral and Partisan Cycles in Economic Policies and Outcomes,” Annual Review of Political Science 5(1), 369-421.

Gerber, A., Neitzel, J., and P.C. Wichardt (2013): “Minimum Participation Rules for the Provision of Public Goods,” European Economic Review, 64, 209-222.

Hayo, B., and S. Voigt (2016): "Explaining Constitutional Change: The case ofJudicial Independence," International Review of Law and Economics, 48, 1-13.

Lange, A., Schmitz, J. and C. Schwirplies (2022): “Inequality, Role Reversal and Cooperation in Multiple Group Membership Settings,” Experimental Economics, 25, 68-110 (https://doi.org/10.1007/s10683-021-09705-y).

McCoy, J., Rahman, T., and M. Somer (2018): "Polarization and the Global Crisis of Democracy: Common Patterns, Dynamics, and Pernicious Consequences for Democratic Polities," American Behavioral Scientist, 62(1), 16-42.

Pluemper, T., and V. E. Troeger (2008): “Fear of Floating and the External Effects of Currency Unions,” American Journal of Political Science 52(3), 656-676.

Svolik, M. W. (2019): "Polarization versus Democracy," Journal of Democracy, 30, 20-32