Ideas, leaders, and institutions in 19th-century Chile

Juan Pablo Couyoumdjian and Cristian Larroulet Vignau

Journal of Institutional Economics, 2018, vol. 14, issue 5, 925-947

Abstract: Institutions matter for economic growth. Thus, the leaders who help to develop institutions, and their ideas and beliefs, must play a central role in any narrative that seeks to explain such growth. This leads to the appearance of institutional entrepreneurs, who act in a given cultural and political environment. We focus on the problem of state building, where formal institutions designed by leaders must be consistent with a given society's existing informal institutions. We consider an analytical narrative focusing on the Chilean experience in the 19th century. This serves as an interesting quasi-natural experiment on the role of ideas, leaders, and institutions in the problem of economic growth and development.

Date: 2018
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