The purpose of this paper is to develop a testable theory, the interaction thesis, capable of explaining why do we observe differences in economic stability and growth rates between various countries; or - the same thing - why less efficient countries do not duplicate economic policies of more...

1. Introduction -- 2. Basic definitions and theoretical conceptions of institutional economics -- 3. A theory of the emergence of institutions -- 4. A model of networks of institutions -- 5. Varieties of policy reactions to the recent financial and economic crises and national systems of...