that strong rule of law institutions may ameliorate the possible adverse effects of political and economic crises on … heterogeneous effects depending on the type of crisis and how we measure it. We find that rule of law institutions can control …, armed conflict and civil war, and economic crisis such as currency and debt crisis. …

institutions. We place our emphasis on the European Union (EU), which is both economically and financially large and has several … and liquidity losses. These principles include prompt legal closure of institutions before they become economically … insolvent, prompt identification of claims and assignment of losses, prompt reopening of failed institutions, and prompt …

directed first at closing institutions promptly, reforming bankruptcy statutes to admit special procedures for handling bank …

variables. In particular, countries with longer histories of state-level political institutions experience less macroeconomic …