Towards Behavioral Political Economy of Institutional Change: With Field Facts from China

41 Pages Posted: 30 Sep 2014

See all articles by Yongjing Zhang

Yongjing Zhang

University of Ottawa - Graduate School of Public and International Affairs

Mei Wang

WHU - Otto Beisheim School of Management

Date Written: September 29, 2014

Abstract

This study proposes an analytical framework towards behavioral political economy of institutional change. It considers institutional changes as central government’s choices under uncertainty, which are largely driven by the strategic outcomes in a behavioral coordination game between local officials and private businessmen. With field facts in China, this study suggests that institutional changes begin with pro-competition policies, then a better protection of property rights, followed by a possible standstill or even worse rule of law.

Keywords: behavioral economics, China, institutional change, political economy

JEL Classification: D030, D700, O430, P260

Suggested Citation

Zhang, Yongjing and Wang, Mei, Towards Behavioral Political Economy of Institutional Change: With Field Facts from China (September 29, 2014). CESifo Working Paper Series No. 4956, Available at SSRN: https://ssrn.com/abstract=2502787

Yongjing Zhang (Contact Author)

University of Ottawa - Graduate School of Public and International Affairs ( email )

75 Laurier Avenue East
Ottawa, Ontario K1N 6N5
Canada

Mei Wang

WHU - Otto Beisheim School of Management ( email )

Burgplatz 2
Vallender, 56179
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
61
Abstract Views
470
rank
419,305
PlumX Metrics