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We propose a simple model of the evolution of institutional strength, where leaders'
actions have a persistent effect by shaping the norms of the institutions they lead. This
leads to different long-run behaviors even for institutions with the same formal rules.
The early history of leaders plays a crucial role in determining which outcome prevails.
Every period, a leader decides to respect or abuse their position. Respect strengthens
the institutions; abuse weakens them. Leader's type and institutional strength determine
both the benefit/cost of abusing the position and the replacement probability.
We elucidate democratic backsliding and corporate-board capturing.
