Institutions are important for proper economic performance, but are replaceable by trust or other social norms. We show … that when proper institutions and trust are missing, integrity of the individuals can replace them. We construct a model of … a transactions-based economy with contracts preceding the transactions, and show that any one of (1) institutions, (2 …

social capital; then, social capital determines the level of corruption; finally, corruption affects economic performance. We … test this hypothesis on a dataset of Italian provinces, and address the possible endogeneity of corruption by applying an … IV model. We use three sets of historical instruments for corruption: 1) foreign dominations in 16th-17th century, 2 …

Baltic countries, which opted for a fast and profound transformation of their institutions including business climates … during transition rises in countries where reforming institutions is particularly costly. …

institutions. We find that landownership concentration, a proxy for the institution of serf labor, has a negative effect on …

institutions precede crises and, interestingly, positive reforms occur thereafter. Strong institutions shorten the duration of … interaction effect suggests they can be offset by appropriate institutions. …

of institutions. Yet via unification, East Germany had immediate access to credible, high quality institutions. This … paper argues that success in a capitalist economy depends not only on high quality institutions but also on finding one …

After a decade of research on the relationship between institutions and growth, scholars in this field seem to be … divided. Economic institutions perform well in growth regressions and a body of literature argues that this supports the key … importance of institutions for development. Other authors maintain that the type of constraints that the recent theoretical …