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

Dothan, Shai (author), Kovač, Mitja (author), Spruk, Rok (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.

• Language: English
• Keywords: Mexico, institutions, history, changes, institutional change, historical shocks, institutional shocks
• Work type: Article
• Typology: 1.01 - Original Scientific Article
• Organization: EF - School of Economics and Business
• Publication status: Published
• Publication version: Version of Record
• Year: 2024
• Number of pages: 24 str.
• Numbering: Vol. 16, article no. ǂ100128
• PID: 20.500.12556/RUL-176386
• UDC: 321
• ISSN on article: 2667-3193
• DOI: /10.1016/j.jge.2024.100128
• COBISS.SI-ID: 216189699
• Publication date in RUL: 28.11.2025

Record is a part of a journal

• Title: Journal of government and economics
• Publisher: Elsevier
• ISSN: 2667-3193
• COBISS.SI-ID: 69503235

Licences

• License: CC BY-NC-ND 4.0, Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International
• Link: http://creativecommons.org/licenses/by-nc-nd/4.0/
• Description: The most restrictive Creative Commons license. This only allows people to download and share the work for no commercial gain and for no other purposes.

Secondary language

• Language: Slovenian
• Keywords: Mehika, institucije, zgodovina, spremembe