We study the role of institutional development as a causal mechanism of history affecting current economic performance. Several indicators capturing different dimensions of early development in 1500AD are used to remove the endogenous component of the variations in institutions. These indicators...

Schumpeterian growth theory has "operationalized" Schumpeter''s notion of creative destruction by developing models based on this concept. These models shed light on several aspects of the growth process which could not be properly addressed by alternative theories. In this survey, we focus on...

Schumpeterian growth theory has operationalized Schumpeter’s notion of creative destruction by developing models based on this concept. These models shed light on several aspects of the growth process that could not be properly addressed by alternative theories. In this survey, we focus on...

Schumpeterian growth theory has operationalized Schumpeter’s notion of creative destruction by developing models based on this concept. These models shed light on several aspects of the growth process that could not be properly addressed by alternative theories. In this survey, we focus on...

We discuss the two-way link between culture and economic growth. We present a model of endogenous technical change where growth is driven by the innovative activity of entrepreneurs. Entrepreneurship is risky and requires investments that affect the steepness of the lifetime consumption profile....

We discuss the two-way link between culture and economic growth. We present a model of endogenous technical change where growth is driven by the innovative activity of entrepreneurs. Entrepreneurship is risky and requires investments that affect the steepness of the lifetime consumption profile....

Three important aspects of development—per capita income, state capabilities, and (the absence of) political violence—are correlated with each other at the country level. This article discusses the causes of such development clusters and highlights two explanations: common economic,...

This article examines envy as an important cultural link between inequality, institutions, development, and conflict. It argues that envy can be either a source of strife and stagnation or an engine for peaceful competition and growth. The fundamental conditions that activate the constructive...

We report on recent findings of a fruitful research agenda that explores the importance of ethnic-specific traits in shaping African development. First, using recent surveys from Sub-Saharan African countries, we document that individuals identify with their ethnic group as often as with the...

We show empirically that natural resources do not always deteriorate the institutional quality in a country. Countries with a parliamentary systems are not affected by natural resources abundance. However, presidential systems undergo a nonlinear effect (inverse U -shaped) of natural resources...