One of the strongest stylized facts of the transition is also one of the most unexpected: after 1989 Central and Eastern European and Former Soviet Union countries diverged massively. Institutions are a main reason. The EU anchor thesis posits that the prospect of membership in the European...

In their survey of the literature on ethnic fractionalization and economic performance, Alesina and La Ferrara (JEL 2005) identify two main directions for future research. One is to improve the measurement of diversity and the other to treat diversity as an endogenous variable. This paper tries...

What aspects of institution building most affect the transition to a market economy? In terms of effects on per capita income and school enrollment, the rule of law may be most important. In terms of life expectancy, the quality of the bureaucracy plays a more crucial role.Campos presents...