Haile, Daniel; Sadrieh, Abdolkarim; Verbon, Harrie A. A. - Universität <Magdeburg> / Fakultät für … - 2007
We study the effect of fair institutions on growth. In our model, individuals are endowed with unequal entitlements to theeconomy’s output. They can free-ride or cooperate. Cooperation is individually costly, but increases aggregate output and growth.Experimentally, we observe significantly...