This paper aims to collaborate with the discussion about the factors that try to explain the economic behavior in Latin America countries, considering the importance of some attributes related to social capital (ie interpersonal trust, which leads to association and civic commitment, performing...

This paper does three things. First, based on a limited number of theoretically established dimensions, it proposes a new de facto indicator for the rule of law. It is the first such indicator to take the quality of legal norms explicitly into account. Second, using this indicator we shed new...

A large body of evidence suggests that poor countries tend to invest less (have lower PPP - adjusted investment rates) and to face higher relative prices of investment goods. It has been suggested that this happens either because these countries have lower TFP in the investment - good producing...

While some view the informal economy as parasitic, others view it in a more positive light. We argue that the effect of the informal economy on development depends on both the size of the locale and the institutional environment. Good institutions facilitate productive activity and voluntary...

The purveyance of the rule of law in developing countries has frequently been associated with positive economic development. Better clarity, scope, transparency and enforcement of the laws will promote confidence and trust in the formal legal system, the argument suggests. At its core, this...