Noel Maurer

When the Law Does Not Matter: The Rise and Decline of the Mexican Oil Industry

Changes in formal institutions do not always affect economic outcomes. When an industry has specific technological features that limit a governments ability to expropriate it, or when the industry is able to call on foreign governments to enforce its de facto property rights, economic agents can easily mitigate changes in formal institutions designed to reduce these property rights. We explore the Mexican oil industry from 1911 to 1929 and demonstrate that informal rather than formal institutions were key, permitting oil companies to coordinate their responses to increases in taxes or the redefinition of their de jure property rights.

Mexico Since 1980: Mexico Before 1982: The Political Economy of Authoritarian Rule

Mexico experienced major economic and political transformations during the 1980s and 1990s that ushered in an open economy and electoral democracy. These transformations are not understandable if viewed outside of the broader context of Mexicos history. Thus, a balanced assessment of both the importance and the limits of these changes requires an understanding of Mexicos political economy before 1982. Twice in its history, Mexico was governed by authoritarian regimes based on rent-seeking coalitions. The first was the dictatorship of Porfirio Diaz (1876–1911, a period known as the Porfiriato); the second was the party-based authoritarian regime that took shape in the aftermath of Mexicos 1910–1920 revolution and held sway until the election of Vicente Fox Quesada in 2000. These two regimes differed greatly in their social bases, their degree of political institutionalization, and their resilience in the face of pressures for change. Yet these regimes also had some important things in common: They produced long periods of stable government, centralized political power in the presidency, and pursued protectionist economic policies. Both regimes also produced a highly unequal distribution of the benefits of economic growth – a direct result of the fact that they allocated public policies and property rights selectively, so as to benefit primarily the core members of the coalitions that supported them.

Mexico Since 1980: Abbreviations and Acronyms

1. The second Mexican revolution: economic, political, and social change since 1980 2. Mexico before 1982: the political economy of authoritarian rule 3. The causes and consequences of free trade 4. The Mexican banking system: the politics and economics of financial underdevelopment 5. The transformation of Mexican politics 6. Health, education, and welfare in Mexico since 1980 7. Democracy and development in Mexico: future challenges and the legacy of authoritarian rule.

Mexico Since 1980: Acknowledgments

1. The second Mexican revolution: economic, political, and social change since 1980 2. Mexico before 1982: the political economy of authoritarian rule 3. The causes and consequences of free trade 4. The Mexican banking system: the politics and economics of financial underdevelopment 5. The transformation of Mexican politics 6. Health, education, and welfare in Mexico since 1980 7. Democracy and development in Mexico: future challenges and the legacy of authoritarian rule.

Mexico Since 1980: Contents

1. The second Mexican revolution: economic, political, and social change since 1980 2. Mexico before 1982: the political economy of authoritarian rule 3. The causes and consequences of free trade 4. The Mexican banking system: the politics and economics of financial underdevelopment 5. The transformation of Mexican politics 6. Health, education, and welfare in Mexico since 1980 7. Democracy and development in Mexico: future challenges and the legacy of authoritarian rule.

Mexico Since 1980: Frontmatter

1. The second Mexican revolution: economic, political, and social change since 1980 2. Mexico before 1982: the political economy of authoritarian rule 3. The causes and consequences of free trade 4. The Mexican banking system: the politics and economics of financial underdevelopment 5. The transformation of Mexican politics 6. Health, education, and welfare in Mexico since 1980 7. Democracy and development in Mexico: future challenges and the legacy of authoritarian rule.

Mexico Since 1980: Index

1. The second Mexican revolution: economic, political, and social change since 1980 2. Mexico before 1982: the political economy of authoritarian rule 3. The causes and consequences of free trade 4. The Mexican banking system: the politics and economics of financial underdevelopment 5. The transformation of Mexican politics 6. Health, education, and welfare in Mexico since 1980 7. Democracy and development in Mexico: future challenges and the legacy of authoritarian rule.