Are the Seeds of Bad Governance Sown in Good Times?
---- Acknowledgements -----
We thank Yale’s Institution for Social and Policy Studies for financial support. We thank Martin Baker, Martijn Cremers, Gary Gorton, Tim Guinnane, Naomi Laromeaux, Nagpurnanand Prabhala, Roberta Romano, Andrei Shleifer, and participants at the MIT Sloan faculty lunch, MIT organizational economics seminar, the CAF conference at the Indian School of Business, the finance seminar at UNC, University of Washington and the Yale Law School’s Law and Economics seminar for helpful comments. All mistakes are of course our own. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.