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This paper argues that openness to goods trade in combination with an unequal distribution of political power has been a major determinant of the comparatively slow development of resource- or land-abundant regions like South America and the Caribbean in the nineteenth century. We develop a...
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(proxied by individual values) interacts with the stickiest formal institutions in development, which leads to a very special …-togetherness" of values and institutions. Besides establishing that both values and sticky formal institutions are strong determinants … of long-run income, I find that the "stuck-togetherness" of values and institutions acts as a separate factor in …
Persistent link: https://www.econbiz.de/10012259724
This paper argues that openness to goods trade in combination with an unequal distribution of political power has been a major determinant of the comparatively slow development of resource- or land-abundant regions like South America and the Caribbean in the nineteenth century. We develop a...
Persistent link: https://www.econbiz.de/10010261261
entrepreneurial elite, resulting in economic policy and institutions which are more conducive to entrepreneurship and productivity …
Persistent link: https://www.econbiz.de/10010261348
Institutions are important for proper economic performance, but are replaceable by trust or other social norms. We show … that when proper institutions and trust are missing, integrity of the individuals can replace them. We construct a model of … a transactions-based economy with contracts preceding the transactions, and show that any one of (1) institutions, (2 …
Persistent link: https://www.econbiz.de/10010265978
entrepreneurial elite, resulting in economic policy and institutions which are more conducive to entrepreneurship and productivity …
Persistent link: https://www.econbiz.de/10010267484