Institutional economists have analyzed permissionless blockchains as a novel institutional building block for voluntary economic exchange and distributed governance, with their unique protocol features such as automated contract execution, high levels of network and process transparency, and uniquely distributed governance. But such institutional analysis needs to be complemented by polycentric analysis of how blockchains change. We characterize such change as resulting from internal sources and external sources. Internal sources include constitutional (protocol) design and collective-choice processes for updating protocols, which help coordinate network participants and users. External sources include competitive pressure from other cryptocurrency networks. By studying two leading networks, Bitcoin and Ethereum, we illustrate how conceptualizing blockchains as competing and constitutional polycentric enterprises clarifies their processes of change.

We investigate the impact of professional networks on men's and women's earnings, using a dataset of European and North American executives. The size of an individual's network of influential former colleagues has a large positive association with remuneration, with an elasticity of around 21%. However, controlling for unobserved heterogeneity using various fixed effects as well as a placebo technique, we find that the real causal impact of networks is barely positive for men and significantly lower for women. We provide suggestive evidence indicating that the apparent discrimination against women is due to two factors: first, both men and women are helped more by own-gender than other-gender connections, and men have more of these than women do. Second, a subset of employers we identify as ‘female friendly firms’ recruit more women but reward networks less than other firms.

The impact of trust on economic performance has been widely explored, but the reasons for its variability across countries are not well understood. We analyse the effect of the quality of government at the regional level on individual generalized trust in a multi-country context across regions in Europe. Social phenomena are often subnational and a number of public services are provided at a subnational level; the trust of individuals living in the same country may, therefore, differ by region depending also on the quality of the local government. As a proxy of the quality of institutions, we use the European Quality of Government Index, calculated at the regional level over 27 European Union (EU) countries. The analysis conducted on data extracted from the European Social Survey 2012 refers to 142 regions from 15 EU member states. Considering the clustered nature of the data, a multilevel approach is used. The findings show that living in a region with high-quality local government positively influences individual trust. This positive association survives the inclusion of several contextual regional variables.

Local governments in autocracies typically undercompensate residents for their land and take it through eminent domain, while residents lack effective formal channels for bargaining with them. I find that some residents nonetheless can defend against such predation through extralegal land bargaining. By sending resistance signals to challenge the legitimacy of local governments, publicize their grievances, and garner public sympathy, such residents embarrass governments, make it likely higher-level governments will punish local governments, and spur concessions. Such signals, however, are often costly or unavailable, so only resistant entrepreneurs can send them. I illustrate the argument by treating ‘nail-house resistance’ in China as a resistance signal: by refusing to vacate their houses, engaging in violence or self-burning, or turning to the media, some residents stop land takings or gain compensation. The findings enrich our understanding of the political and moral economy of land bargaining and institutional change in a transitional autocracy.

We study the value of the political connections of directors on Chinese boards. We build a new dataset that measures connections of directors to members of the Politburo via past school ties, and find that private firms with politically connected directors in the boardroom get on average about 16% higher subsidies over sales per firm (7 million yuan). Connected state-owned enterprises (SOEs) access debt at 11% cheaper cost, which translates into average savings of close to 32 million yuan per firm in lower interest payments. We find that the value of the political connections persisted after the anti-corruption campaign (ACC) of 2012. It became weaker for the cost of debt in SOEs, but stronger for subsidies to private firms. We argue that the value of connections in the private sector increased after the ACC because they became a less risky alternative to corruption. We also show that connected firms do not perform better.

Economic freedom is robustly associated with income growth, but does this association extend to the poorest in a society? In this paper, we employ Canada's longitudinal cohorts of income mobility between 1982 and 2018 to answer this question. We find that economic freedom, as measured by the Fraser Institute's Economic Freedom of North America (EFNA) index, is positively associated with multiple measures of income mobility for people in the lowest income deciles, including (a) absolute income gain; (b) the percentage of people with rising income; and (c) average decile mobility. For the overall population, economic freedom has weaker effects.

This article challenges exclusively rationalist accounts of and offers a complementary explanation for the emergence of liberal trade policy in the Kennedy administration. I draw on recent insights in constructivist institutionalism to emphasize the need to take agency seriously in institutionalist research. Using archival records, I analyze the decisive role Kennedy's advisers played as carriers of ideas in advocating for liberal trade policy by ‘constructing the national interest’, thus convincing a reticent president to support attempts aimed at achieving closer economic integration, culminating in the Trade Expansion Act of 1962. Insights from their role as advisers can help in specifying the role of agency in the ideas and institutional change literature, through strategic action which shaped a political leader's belief and put political issues on the agenda. By grasping agency in terms of making ideas actionable, an important step is taken in advancing endogenous approaches of institutional change.

In the 1970s, Elinor Ostrom and her colleagues found that neighborhood policing works better than metropolitan policing. Though Ostrom articulated design principles for self-governance, the early studies of neighborhood policing did not. In this paper, we articulate the design principles for self-governing policing, which we term Ostrom-Compliant Policing. We then apply this framework to an understudied case: policing on American Indian reservations. Policing in Indian country generally falls into one of three categories – federal policing (by the Bureau of Indian Affairs and Federal Bureau of Investigation), state policing (by municipal and state police departments), and tribal policing (by tribal police departments) – that vary in the degree of centralization. Our main contribution is to show that tribal policing as it is practiced in the United States, which claims to be self-governing, is not Ostrom-Compliant. Thus, our approach offers insight into why high crime remains an ongoing challenge in much of Indian country even when tribes have primary control over policing outcomes. This does not mean centralization is better, or that self-governance of policing does not work. Rather, our research suggests that a greater tribal autonomy over-policing and meta-political changes to federal rules governing criminal jurisdictions is necessary to implement Ostromian policing.

Nineteenth-century Japan remains a void in the literature on institutions and growth. Developmental institutions evolved in Japan after the Meiji Restoration despite the absence of political participation. Authoritarian change agents usually face a trade-off between reform and stability: they have coercive power to remove underproductive institutions, but at the risk of inviting instability, as politically influential deprivileged elites may engage in counteraction to recover what they perceive as their entitlement. Many authoritarian regimes, thus, coopt elites by allowing them access to rent, but such buying-off inevitably compromises institutional improvement. How did Meiji Japan overcome this dilemma and liberate major fiscal and administrative spaces for productive players who generate wealth and increase the size of the economic pie for society? This article presents a model that it calls ‘elite redeployment’ to answer this puzzle. In lieu of elite bargains in participatory polities in Europe, the revolutionary authoritarian regime in Japan coercively deprivileged traditional elites and redeployed those with financial or human capital among them in productive institutions. By doing so, the Japanese authoritarian change agents dismantled the incumbent institutions in an irreversible manner and swiftly built new institutions such as modern administrative, educational, financial, and commercial sectors, while maintaining stability.