Hostname: page-component-586b7cd67f-rcrh6 Total loading time: 0 Render date: 2024-11-24T22:37:34.538Z Has data issue: false hasContentIssue false

The origins of governments: from anarchy to hierarchy

Published online by Cambridge University Press:  06 May 2010

MATTHEW BAKER
Affiliation:
Department of Economics, City University of New York, New York, USA
ERWIN BULTE
Affiliation:
Development Economics Group, Wageningen University, and Department of Economics, Tilburg University, Netherlands
JACOB WEISDORF*
Affiliation:
Department of Economics, University of Copenhagen, Denmark

Abstract:

We analyze development trajectories of early civilizations where population size and technology are endogenous, and derive conditions under which such societies optimally ‘switch’ from anarchy to hierarchy – when it is optimal to elect and support a ruler. The ruler provides an efficient level of law and order, but creams off part of society's surplus for his own consumption. Switching to hierarchy occurs if the state of technology exceeds a threshold value, but societies may also be ‘trapped’ at lower levels of technology, perpetuating conditions of anarchy. We present empirical evidence based on the Standard Cross Cultural Sample that support the model's main predictions.

Type
Research Article
Copyright
Copyright © The JOIE Foundation 2010

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Acemoglu, D. and Robinson, J. (2005), The Economic Origins of Dictatorship and Democracy, Cambridge: Cambridge University Press.CrossRefGoogle Scholar
Alchian, A. E. and Demsetz, H. (1972), ‘Production, Information Costs, and Economic Organization’, American Economic Review, 62: 777795.Google Scholar
Alesina, A. and Spolaore, E. (1997), ‘On the Number and Size of Nations’, Quarterly Journal of Economics, 112: 10271056.CrossRefGoogle Scholar
Alesina, A. and Spolaore, E. (2005), ‘War, Peace, and the Size of Nations’, Journal of Public Economics, 89: 13331354.CrossRefGoogle Scholar
Alesina, A. and Spolaore, E. (2006), ‘Conflict, Defense Spending and the Number of Nations’, European Economic Review (forthcoming).CrossRefGoogle Scholar
Baker, M. J. (2003), ‘An Equilibrium Model of Land Tenure in Hunter-Gatherer Societies’, Journal of Political Economy, 111: 124173.CrossRefGoogle Scholar
Baker, M. J. and Miceli, T. (2005), ‘Land Inheritance Rules: Theory and Cross-Cultural Analysis’, Journal of Economic Behavior and Organization, 56: 77102.CrossRefGoogle Scholar
Baker, M. J. (2008), ‘A Structural Model of the Transition to Agriculture’, Journal of Economic Growth, 13: 257292.CrossRefGoogle Scholar
Baye, M. R., Kovenock, D., and de Vries, C. G. (1994), ‘The Solution to the Tullock Rent-Seeking Game when R > 2: Mixed-Strategy Equilibria and Mean Dissipation Rates’, Public Choice, 81: 363380.CrossRefGoogle Scholar
Bolton, P. and Roland, G. (1997), ‘The Break-up of Nations: A Political Economy Analysis’, Quarterly Journal of Economics, 112: 10571090.CrossRefGoogle Scholar
Bolton, P., Roland, G., and Spolaore, E. (1996), ‘Economic Theories of the Breakup and Integration of Nations’, European Economic Review, 40: 697706.CrossRefGoogle Scholar
Brander, A. and Taylor, M. (1998), ‘The Simple Economics of Easter Island: A Ricardo-Malthus Model of Renewable Resource Use’, American Economic Review, 88: 119138.Google Scholar
Cashdan, E. (2001), ‘Ethnic Diversity and Its Environmental Determinants: Effects of Climate, Pathogens, and Habitat Diversity’, American Anthropologist, 103: 968991.CrossRefGoogle Scholar
CominD., W. Easterly D., W. Easterly and Gong, E. (2007), ‘Was the Wealth of Nations Determined in 1000 B.C.?’,NBER Working Paper 12657.Google Scholar
Earle, T. (1989), ‘The Evolution of Chiefdoms’, Current Anthropology, 30: 8488.CrossRefGoogle Scholar
Fernandez-Armesto, F. (2000), Civilizations, London: Macmillan.Google Scholar
Galor, O. (2005), ‘From Stagnation to Growth: Unified Growth Theory’, in Aghion, P. and Durlauf, P. (eds.), Handbook of Economic Growth, Amsterdam: North-Holland, pp. 171293.Google Scholar
Gray, J. P. (ed.) (2006), World Cultures: Journal of Comparative and Cross Cultural Research, Social Sciences Department, York College – City University of New York.Google Scholar
Grossman, H. I. (2002), ‘“Make us a King”: Anarchy, Predation, and the State’, European Journal of Political Economics, 18: 3146.CrossRefGoogle Scholar
Harris, M. (1997), Culture, People, Nature: An Introduction to General Anthropology, 7th edition, New York: Longman.Google Scholar
Hirschleifer, J. (1995), ‘Anarchy and Its Breakdown’, Journal of Political Economy, 103: 2652.CrossRefGoogle Scholar
Hommon, R. (1986), ‘Social Evolution in Ancient Hawai'I’, in Kirch, P. (ed.), New York: Cambridge University Press, pp. 5569.Google Scholar
Horan, R. D., Bulte, E. H., and Shogren, J. F. (2005), ‘How Trade Saved Humanity from Biological Exclusion: An Economic Theory of Neanderthal Extinction’, Journal of Economic Behavior and Organization, 59: 297323.Google Scholar
Kelly, R. (1995), The Foraging Spectrum, Washington, DC and London: The Smithsonian Institution Press.Google Scholar
Kirch, P. (1984), The Evolution of Polynesian Chiefdoms, New York: Cambridge University Press.Google Scholar
Leeson, P. T. (2006), ‘Efficient Anarchy’, Public Choice, 130: 4153.CrossRefGoogle Scholar
Leeson, P. T. (2007), ‘Better off Stateless: Somalia Before and After Government Collapse’, Journal of Comparative Economics, 35: 689710.CrossRefGoogle Scholar
McGuire, M. and Olson, M. Jr (1996), ‘The Economics of Autocracy and Majority Rule: The Invisible Hand and the Use of Force’, Journal of Economic Literature, 34: 7296.Google Scholar
Murdock, G. P. (1967), Ethnographic Atlas, Pittsburg: Pittsburg University Press.Google Scholar
Murdock, G. P. and White, D. (1969), ‘The Standard Cross-Cultural Sample’, Ethnology, 8: 329369.CrossRefGoogle Scholar
Olson, M. (1993), ‘Dictatorship, Democracy, and Development’, American Political Science Review, 87.CrossRefGoogle Scholar
Olson, M. (2000), Power and Prosperity, New York: Basic Books.Google Scholar
Pryor, F. L. (1986), ‘The Adoption of Agriculture: Some Theoretical and Empirical Evidence’, American Anthropologist, 88: 894897.CrossRefGoogle Scholar
Shekhar, A., Dalgaard, C.-J., and Moav, O. (2006), ‘Technological Progress and Regress in Pre-industrial Times’, CEPR Discussion Paper No. 5454.Google Scholar
Tuden, A. and Marshall, C. (1972), ‘Political Organizations and Cross Cultural Codes 4’, Ethnology, 11: 436464.CrossRefGoogle Scholar
Usher, D. (1989), ‘The Dynastic Cycle and the Stationary State’, American Economic Review, 79: 10311044.Google Scholar
Weisdorf, J. L. (2005), ‘From Foraging to Farming: Explaining the Neolithic Revolution’, Journal of Economic Surveys, 19: 561586.CrossRefGoogle Scholar
Williamson, O. E. (1973), ‘Markets and Hierarchies: Some Elementary Considerations’, American Economic Review, 63: 316325.Google Scholar
Woodburn, J. (1982), ‘Egalitarian Societies’, Man, 17: 431451.CrossRefGoogle Scholar