Institutional change is shaped by historical conditions and initial choices.
Evidence
By path dependence we mean that the process of institutional change is shaped by historical conditions and initial institutional choices. Thus two societies that start with somewhat diļ¬erent institutions (potentially similar, but still with small diļ¬erences), may end up with very diļ¬erent trajectories. ā Daron Acemoglu, Georgy Egorov, and Konstantin Sonin, Institutional Change and Institutionalā¦, 205
Categorization
- DEFINE: Defines path dependence as historical shaping of institutional change, the chapterās core analytic term.
- QUESTION: The excerpt stops at ātwo societies that start withā ā the comparison of same-start divergent outcomes is only half-stated here and worth chasing into the next passage.