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resolution. We then use the model to quantify the gains from relaxing migration restrictions as well as to describe the evolution … liberalizing migration would increase welfare more than three-fold and would significantly affect the evolution of particular …
Persistent link: https://www.econbiz.de/10011252617
We estimate the respective contributions of institutions, geography, and trade in determining income levels around the world, using recently developed instruments for institutions and trade. Our results indicate that the quality of institutions 'trumps' everything else. Once institutions are...
Persistent link: https://www.econbiz.de/10005667122
In recent theories of comparative development the role of institutional differences has been crucial. Yet what explains … comparative institutional evolution? We investigate this issue by studying the coffee exporting economies of Latin America. While … homogeneous in many ways, they experienced radically different paths of economic (and political) development which is conventional …
Persistent link: https://www.econbiz.de/10005123696
Underdevelopment is thought to be about lack of investment, and many political economy theories can account for this. Yet, there has been much investment in developing countries. The problem has been that investment growth has not led to output growth. We therefore need to explain not simply...
Persistent link: https://www.econbiz.de/10005123875
We construct a simple model where political elites may block technological and institutional development, because of a … replaced. Fearing replacement, political elites are unwilling to initiate change, and may even block economic development. We … show that elites are unlikely to block development when there is a high degree of political competition, or when they are …
Persistent link: https://www.econbiz.de/10005124137
One of the key goals of political economy is to understand how institutional arrangements shape policy outcomes. This paper studies a comparatively neglected aspect of this - the forces that shape heterogeneous performance of autocracies. The paper develops a simple theoretical model of...
Persistent link: https://www.econbiz.de/10005136611
in the world in a few decades. Now China is returning to its historical past. To understand China’s development, and to …
Persistent link: https://www.econbiz.de/10011145429
Why do soft budget constraints exist and persist? In this paper we argue that the prevalence of soft budget constraints can be best explained by the political desirability of softness. We develop a political economy model where politicians cannot commit to policies that are not ex post optimal....
Persistent link: https://www.econbiz.de/10005114300
population well-being and facilitate economic and institutional development. The empirical evidence on its benefits is mixed and …
Persistent link: https://www.econbiz.de/10011083342
comparative development. We also show that ethnic inequality goes in tandem with lower levels development within countries. Using …
Persistent link: https://www.econbiz.de/10011084675