There is a broad agreement that political and economic institutions matter for long-term development. Yet relatively little is known as to how to adopt good quality institutions and reform weak or poor institutions, for which one needs to know how institutions change. This paper provides a...

The new institutional economics has one of its roots in evolutionary thinking. The idea is that there is competition among organizational forms. Some forms spread faster than others and thereby displace and eventually destroy the less well adapted forms. In the end, the most 'efficient'...