Journal
PROCEEDINGS OF THE NATIONAL ACADEMY OF SCIENCES OF THE UNITED STATES OF AMERICA
Volume 108, Issue -, Pages 21320-21325Publisher
NATL ACAD SCIENCES
DOI: 10.1073/pnas.1017139108
Keywords
dynamics of institutions; social norms
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Funding
- Belgian Program on Interuniversity Poles of Attraction [PAI-IAP P6/07]
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Empowerment of disadvantaged groups of population is a key issue in development. One major difficulty in implementing progressive legal reforms arises from the persistent and contrary influence of custom. In this paper, we present a simple theoretical framework that analyzes how customary rules evolve under the impact of a change in formal law. This evolution is ultimately caused by a modification of relative costs and benefits of exiting the community by members of the disadvantaged groups as a result of change in the law. We also describe how the welfare of these groups is affected and provide illustrative evidence.
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