Cervellati, Matteo; Fortunato, Piergiuseppe; Sunde, Uwe - Institute for the Study of Labor (IZA) - 2005
, institutions shape the income distribution. Simulations illustrate how inequality affects the development process and may lead to … of economic development. Favorable economic institutions ensure the appropriability of rents in form of a state of law … necessary. Inequality in endowments and incomes prolongs the absence of good institutions and delays democratization. Conversely …