Whereas traditional explanations of differences in long-run paths of development across the Americas generally point to the significance of differences in national heritage or religion, we highlight the relevance of stark contrasts in the degree of inequality in wealth, human capital, and...

This paper investigates whether social cohesion makes economic reforms more likely. First, we investigated whether social cohesion is a coherent concept by using a principal-component factor (PCF) analysis covering 16 indicators used to measure social cohesion in the previous literature for 40...

In games with multiple, Pareto-rankable equilibria and repeated play, does a history of playing an inefficient equilibrium make it harder for players to reach the efficient equilibrium? In other words, can people “get stuck” in bad equilibria? Previous studies have found support for this,...

L’idea centrale di questo articolo verte sul fatto che anche se viviamo in un mondo fortemente globalizzato, la dimensione geografica locale ricopre un ruolo preponderante. Sono le attività legate all’innovazione, in modo particolare, a dimostrare una tendenza all’agglomerazione...

Our theory of cultural-institutional persistence and innovation is based on uncoordinated updating of individual social norms and contracts, so that both culture and institutions co-evolve. We explain why Pareto-dominated cultural-institutional configurations may persist over long periods and...

We provide evidence that a tradition of village democracy is associated with the presence of national democracy today. We also show that a tradition of local democracy is associated with attitudes which are more supportive of democracy, with better quality institutions and with higher levels of...

The paper presents a summary of the forthcoming book by the authors and discusses the sample study of the 9 developing countries. While admitting the non-linearity of economic development they claim that the developing countries make a transition from the limited access orders (where the...

The process of development is linked to the rise of an integrated and competitive economy and polity that allow a maximal division of labor and innovation. This process relies on two intertwined dynamics. First, in the establishment of the rule of law, legal instruments are appropriated by those...

This paper was prepared to present at the Farmer First Revisited: 20 Years On conference at IDS, University of Sussex, UK, December 2007. Its focus is the challenge of strengthening agricultural innovation systems. The paper prefaces this discussion by reflecting on an apparent paradox. While...

Institutions affect investment decisions, including investments in human capital. Hence institutions are relevant for the allocation of talent. Good market-supporting institutions attract talent to productive value-creating activities, whereas poor ones raise the appeal of rent-seeking. We...