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A new line of theoretical and empirical literature emphasizes the pivotal role of fair institutions for growth. We present a model, a laboratory experiment, and a simple cross-country regression supporting this view. We model an economy with an unequal distribution of property rights, in which...
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corruption. Despite the ubiquity of literature on corruption, the relationship between a state's political capacity and … corruption has not been addressed by the existing academic literature. To measure the political capacity of a country, the … reducing corruption. On the other hand, a strong political capacity provides them with the opportunity for rent-seeking and …
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