A new line of theoretical and empirical literature emphasizes the pivotal role of fair institutions for growth. We present a model, a laboratory experiment, and a simple cross-country regression supporting this view. We model an economy with an unequal distribution of property rights, in which...

Trust games are employed to investigate the effect of heterogeneity in income and5 race on cooperation in South Africa. The amount of socio-economic informationavailable to the subjects about their counterparts is varied. No significantbehavioural differences are observed when no such...

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...

Trust games are employed to investigate the effect of heterogeneity in income and race on cooperation in South Africa. The amount of socio-economic information available to the subjects about their counterparts is varied. No significant behavioural differences are observed, when no such...

A new line of theoretical and empirical literature emphasizes the pivotal role of fair institutions for growth. We present a model, a laboratory experiment, and a simple cross-country regression supporting this view. We model an economy with an unequal distribution of property rights, in which...

Trust games are employed to investigate the effect of heterogeneity in income and race on cooperation in South Africa. The amount of socio-economic information available to the subjects about their counterparts is varied. No significant behavioural differences are observed, when no such...