Emergence and Persistence of Inefficient States
---- Acknowledgements -----
We thank Miriam Golden, Guido Tabellini and seminar participants at IGIER-Bocconi, the Latin American Meetings of the Econometric Society, and Yale for useful comments and suggestions. Acemoglu gratefully acknowledges financial support from the National Science Foundation and the hospitality of the Yale Economics Department. Vindigni gratefully acknowledges the hospitality of Collegio Carlo Alberto and of the Yale Leitner Program in International Political Economy. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.