Incongruence between political and economic power drives institutional change

Evidence

The reason for institutional change in this case is that the group in power under current institutions, group i∗, prefers an alternative institutional arrangement. — Daron Acemoglu, Georgy Egorov, and Konstantin Sonin, Institutional Change and Institutional…, 387

Categorization

• XREF: Connects to Douglass North’s work on institutional change and Mancur Olson’s theory of encompassing interests.