Institutions, Governance, and Growth
Paper Session
Saturday, Jan. 4, 2025 12:30 PM - 2:15 PM (PST)
- Chair: Jacob Hall, University of Pennsylvania
The Changing Perceptions of Corruption in France, Great Britain, Russia, and the United States between 1800 and 2019
Abstract
Corruption in public office receives great attention among scholars, policymakers, and the general public due to the heavy social burden associated with it. The first step to understanding corruption, its causes and consequences is to measure it. The main cross-country corruption indicators used today are based on perceptions. These are aggregated from surveys of specialists, businessmen and local populations and start in the 1990s. In this paper we develop a new methodology to compute an Historical Corruption Index (HCI) going back to the early 19th century. As we cannot survey past individuals, we resort to the database of books digitized by Google and that can be interrogated as N-grams. We create historically-sensitive corruption dictionaries and apply them to the corpora of books in English (British and American), French and Russian. We validate the resulting HCI with contemporary leading measures of corruption perceptions for the period where the Google database overlaps with the latter. We then use a factor model to extract two latent factors from the raw data. The first maps on to traditional forms of abuse of public office (bribery, embezzlement) and is dominant until the early 20th century. The second factor is more prominent since and is associated with forms of clientelism and cronyism. We conclude that the timing of the two factors aligns with the national histories of corruption in the four nations covered and also with the broad historical changes in the organization of the civil service and the relation between state and the private sector.The Negus and the Monks: Monasteries, State Formation and Long-Run Development in Ethiopia, 1270-2020
Abstract
Is Africa 's historical lack of stable indigenous institutions important in explaining her economic performance in the 20th and 21st centuries? This paper explores this question by studying the mechanics and the effect of early centralization Ethiopia, the only African state that enjoyed sufficient military and fiscal capacity to maintain its independence throughout the middle ages and the colonial era. In a flexible regression discontinuity design (RDD) at multiple historical boundaries, the paper shows that longer exposure to centralized institutions translates into people being richer and more likely to display ethnic, linguistic and religious traits related to the traditional Ethiopian cultural identity today. Ethiopian monarchs (Negus) relied heavily on the Ethiopian orthodox church to buttress their authority and to build state infrastructure. The analysis of the mechanisms suggests that the effects are stronger for periods and boundaries when the Ethiopian state used the church systematically, within a general program of state expansion, to project power across its territory.JEL Classifications
- N3 - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy
- D7 - Analysis of Collective Decision-Making