Long-term effects of deep institutional shocks: Historical evidence from Mexico

This paper examines the potential impact of institutional shocks on long-term development of property rights and on institutions regulating contracting. The paper seeks to demonstrate that the external institutional shocks might have an uncontemplated side-effect on the institutional development of...

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Main Authors: Shai Dothan, Mitja Kovac, Rok Spruk
Format: Article
Language:English
Published: Elsevier 2024-01-01
Series:Journal of Government and Economics
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2667319324000326
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author Shai Dothan
Mitja Kovac
Rok Spruk
author_facet Shai Dothan
Mitja Kovac
Rok Spruk
author_sort Shai Dothan
collection DOAJ
description This paper examines the potential impact of institutional shocks on long-term development of property rights and on institutions regulating contracting. The paper seeks to demonstrate that the external institutional shocks might have an uncontemplated side-effect on the institutional development of Mexico. The analysis exploits the within-country variation in the presence of US administrative authorities during the Mexican-American conflict across Mexican states and cities. Using propensity score and nearest neighbour matching technique, we present some evidence of the potential long-term institutional implications of the presence of US administrative authorities. We show that the presence of US administrative authority generated an unexpected positive effect which could influence long-term property rights and contracting institutions of Mexican states. The positive impact of US administrative authorities’ presence are robust to a variety of specification checks and are particularly large for smaller cities.
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series Journal of Government and Economics
spelling doaj-art-dd17063f608646e0a142ecc0fe4a527e2025-01-20T04:18:02ZengElsevierJournal of Government and Economics2667-31932024-01-0116100128Long-term effects of deep institutional shocks: Historical evidence from MexicoShai Dothan0Mitja Kovac1Rok Spruk2Associate Professor of International and Public Law, Jean Monnet Chair in EU Law & Politics, University of Copenhagen Faculty of Law affiliated with iCourts—Centre of Excellence for International Courts, DenmarkProfessor of Law Economics, School of Economics and Business, University of Ljubljana, SloveniaAssociate Professor of Economics, School of Economics and Business, University of Ljubljana, Slovenia; Research Fellow, Business School, University of Western Australia, Perth, Australia; Corresponding author.This paper examines the potential impact of institutional shocks on long-term development of property rights and on institutions regulating contracting. The paper seeks to demonstrate that the external institutional shocks might have an uncontemplated side-effect on the institutional development of Mexico. The analysis exploits the within-country variation in the presence of US administrative authorities during the Mexican-American conflict across Mexican states and cities. Using propensity score and nearest neighbour matching technique, we present some evidence of the potential long-term institutional implications of the presence of US administrative authorities. We show that the presence of US administrative authority generated an unexpected positive effect which could influence long-term property rights and contracting institutions of Mexican states. The positive impact of US administrative authorities’ presence are robust to a variety of specification checks and are particularly large for smaller cities.http://www.sciencedirect.com/science/article/pii/S2667319324000326C31D74N16N46
spellingShingle Shai Dothan
Mitja Kovac
Rok Spruk
Long-term effects of deep institutional shocks: Historical evidence from Mexico
Journal of Government and Economics
C31
D74
N16
N46
title Long-term effects of deep institutional shocks: Historical evidence from Mexico
title_full Long-term effects of deep institutional shocks: Historical evidence from Mexico
title_fullStr Long-term effects of deep institutional shocks: Historical evidence from Mexico
title_full_unstemmed Long-term effects of deep institutional shocks: Historical evidence from Mexico
title_short Long-term effects of deep institutional shocks: Historical evidence from Mexico
title_sort long term effects of deep institutional shocks historical evidence from mexico
topic C31
D74
N16
N46
url http://www.sciencedirect.com/science/article/pii/S2667319324000326
work_keys_str_mv AT shaidothan longtermeffectsofdeepinstitutionalshockshistoricalevidencefrommexico
AT mitjakovac longtermeffectsofdeepinstitutionalshockshistoricalevidencefrommexico
AT rokspruk longtermeffectsofdeepinstitutionalshockshistoricalevidencefrommexico