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Focal Points and Power Plays in Institutional Change: An Empirical Assessment

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Abstract:

When theories of institutional change consider ideas at all, they generally assume that all changes from one institution to another are equivalent events. This paper argues that we should expect a very different causal role for ideas in institutional change depending on the direction of that change. Focal points-conspicuous points on which actors can agree-are likely to have an independent impact on the final character of institutions adopted when actors are interdependent and trying to a move to greater institutional coordination. In such cases, institutional change requires that those actors coordinate their beliefs about each other and the effect of a new set of rules. When actors are not interdependent, institutional change in the direction of less coordination is likely to resemble a power play: an actor strengthened by an exogenous shock will trigger the collapse of old institutions and recast new ones that are closer to its preferred outcome. In such cases, ideas serve only as instruments of achieving that predetermined institutional preference. The paper considers these expectations against evidence from four cases of significant change in wage bargaining institutions since 1985: Ireland and Italy, which moved to greater coordination, and Australia and Sweden, which moved to lower coordination.

Most Common Document Word Stems:

institut (149), bargain (94), employ (88), chang (87), union (84), wage (69), agreement (63), actor (60), central (52), coordin (49), p (47), inflat (44), point (43), new (43), govern (34), 1992 (34), culpepp (33), mobil (33), scala (32), negoti (32), idea (31),

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institutional change; political economy; industrial relations; Italy; Ireland; Australia; Sweden
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Name: American Political Science Association
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Culpepper, Pepper. "Focal Points and Power Plays in Institutional Change: An Empirical Assessment" Paper presented at the annual meeting of the American Political Science Association, Hilton Chicago and the Palmer House Hilton, Chicago, IL, Sep 02, 2004 <Not Available>. 2009-05-26 <http://www.allacademic.com/meta/p59814_index.html>

APA Citation:

Culpepper, P. , 2004-09-02 "Focal Points and Power Plays in Institutional Change: An Empirical Assessment" Paper presented at the annual meeting of the American Political Science Association, Hilton Chicago and the Palmer House Hilton, Chicago, IL Online <.PDF>. 2009-05-26 from http://www.allacademic.com/meta/p59814_index.html

Publication Type: Conference Paper/Unpublished Manuscript
Review Method: Peer Reviewed
Abstract: When theories of institutional change consider ideas at all, they generally assume that all changes from one institution to another are equivalent events. This paper argues that we should expect a very different causal role for ideas in institutional change depending on the direction of that change. Focal points-conspicuous points on which actors can agree-are likely to have an independent impact on the final character of institutions adopted when actors are interdependent and trying to a move to greater institutional coordination. In such cases, institutional change requires that those actors coordinate their beliefs about each other and the effect of a new set of rules. When actors are not interdependent, institutional change in the direction of less coordination is likely to resemble a power play: an actor strengthened by an exogenous shock will trigger the collapse of old institutions and recast new ones that are closer to its preferred outcome. In such cases, ideas serve only as instruments of achieving that predetermined institutional preference. The paper considers these expectations against evidence from four cases of significant change in wage bargaining institutions since 1985: Ireland and Italy, which moved to greater coordination, and Australia and Sweden, which moved to lower coordination.

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Document Type: .pdf
Page count: 35
Word count: 10301
Text sample:
Focal Points and Power Plays in Institutional Change: An Empirical Assessment Pepper D. Culpepper John F. Kennedy School of Government Harvard University 79 JFK St. Cambridge MA 02138 pepper_culpepper@harvard.edu August 2004 Abstract When theories of institutional change consider ideas at all they generally assume that all changes from one institution to another are equivalent events. This paper argues that we should expect a very different causal role for ideas in institutional change depending on the direction of that change.
terms. The correlation between the frequency of citations in the two independent sources was respectively .97 .99 and .85. Culpepper p. 34 Figure 2: The Growth of Forecast Inflation References (ANSA) 10 S c ala Mobile (SM) 8 6 Forec as t Inflation and SM 4 Forec as t Inflation 2 and CGIL 0 2/ 89- 8/ 89- 2/ 90- 8/ 90- 2/ 91- 8/ 91- 2/ 92- 7/ 89 1/ 90 7/ 90 1/ 91 7/ 91 1/


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