Economic Shocks, Mobilization, and Regional Elite Splits

Abstract

What are the origins of elite splits? Why do regional elites break away from central elites and develop regional parties? This paper contends that intra-elite differences are more likely to be politicized when an economic shock exacerbates pre-existing asymmetric economic preferences and disadvantaged elites can mobilize the electorate on the basis of identity. I employ constituency-level data from Catalonia spanning the late 19th and early 20th century to test which factors influenced regional elite decisions to form a regional elite political party. To understand elite divisions, I exploit a historical exogenous trade shock and its asymmetric impact within Catalonia, and the availability of identity-based mobilization agents. The results show that regional elite splits took place in areas more affected by the 1898 colonial trade shock and where elites had larger mobilization capacity.