This paper proposes a formal framework to analyze the process of institutional evolution in relation with economic progress. Institutions have both formal (F) and informal (N) aspects that may exhibit varying processes of change. N is hypothesized to evolve with the level of capital stock, as in...

Monetary policy is about the determination of money stock and interest rates to affect economic activity in the short-, medium- and the long-term. Besides helping to eliminate recessionary or inflationary business cycles, controlling interest rates and value of money have important impact on...

This paper provides new evidence on the relative effectiveness of formal monetary institutions in achieving price stability. The institutions considered are, specifically, central bank independence (CBI), inflation targeting (IT), currency boards (CB) and monetary unions (MU). An empirical...

This study provides a method to evaluate the quality of legal frameworks for bank regulation and supervision (RS) by developing a comprehensive set of criteria. Using this method, it also generates an original data set for transition economies that allows for an empirical analysis of the...

This paper investigates the role of small and medium size enterprises (SMEs) in financial market development (FMD). We argue that enabling the access of SMEs to the financial sector may lead to large improvements in the indicators of FMD. Whether such improvements are also growth inducing or...

This is a book about conflict. In that, it is certainly not alone, but it approaches the problem in three East African countries from the standpoint of economic analysis. The authors have not ignored social, ethnic and historical factors which led to conflict, but have identified economic...

Les conflits : tel est le sujet de ce livre. Rien là de bien original si ce n'est qu'il analyse la situation de trois pays d'Afrique de l'Est d'un point de vue économique. Sans faire abstraction des facteurs sociaux, ethniques et historiques qui sont à l'origine des conflits, les auteurs...

The expanding literature on fiscal decentralization (FD) emphasizes the role of institutional mechanisms for FD's welfare effects. We analyze the welfare effects of FD in case of a fiscal transfer mechanism that punishes inefficiency in tax collection and compensates for local income deficiency....