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Posted: May 13th, 2018
ECO – In their seminal book, Why Nations Fail Acemoglu et al
1) In their seminal book, Why Nations Fail Acemoglu et al provided some intuition about thetheory of institutional transition. Based on their work, answer the following questions :a. Define extractive and inclusive political and economic institutions? Provide someexamples? How do they co-exist? (10 points)b. Why do extractive institutions persist? What are the causes? Explain the vicious-cycle ofextractive institutions. What are the consequences? (20 points)c. Explain the theory of institutional change by stating the role of the three components:c.i. Origin of institutionsc.ii. Drift in institutional characteristicsc.iii. Critical junctures.Write a word essay – Evaluate each of the above conditions from empirical observations outlined in thepresentation. (20 points)2) a. Look at the following two graphs:What does the data in the two graphs above say about the nature of labor coercion in twodifference sectors of Mexico during the same time period? (25 points)b. What factors contribute to the transition to democracy? Explain each of the three factors. Canyou predict which country would transit to democracy faster than other countries based on thenature of the three factors? Explain. (25 points)
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