This paper discusses the nature of law as the fifth factor of production, or more fundamentally as the institutional framework within which the production process takes place. Unlike land, labor, capital and entrepreneurship, whose coordination is an outcome of institutional arrangements, the...

William J. Baumol's “Entrepreneurship: Productive, Unproductive, and Destructive” has become a modern classic in development economics and political economy. With the publication of his paper, Baumol forced the economic profession to pay closer attention to the institutional structure within...