Measures of corruption and income are highly correlated across countries. We use prehistoric measures of biogeography as instruments for modern income levels to identify an exogenous long-run income effect. We find that our corruption-free incomes explain the cross-country pattern of corruption...

Acemoglu, Johnson, Robinson, and Yared (2008) demonstrate that estimation of the standard adjustment model with country-fixed and time-fixed effects removes the statistical significance of income as a causal factor of democracy. We argue that their empirical approach must produce insignificant...

The Grand Transition (GT) view claims that economic development is causal to institutional development, and that many institutional changes can be understood as transitions occurring at roughly the same level (zones) of development. The Primacy of Institutions (PoI) view claims that economic...

The quest for benefit from existing wealth or by seeking privileged benefit through influence over policy is known as rent seeking. Much rent seeking activity involves government and political decisions and is therefore in the domain of political economy, although it can also take place in...

In this response to Mekasha and Tarp (2013) we show that contrary to what they state, their study validates our basic analysis. They confirm that the literature finds that aid is of little economic importance in generating growth. The results also show that the literature systematically selects...

Meta-analysis studies a set of estimates of one parameter with three basic tools: The funnel diagram is the distribution of the estimates as a function of their precision; the funnel asymmetry test, FAT; and the meta average, where PET is an estimate. The FAT-PET MRA is a meta regression...

We use factor analysis to derive a robust measure of religiosity from items reported in five waves of the World Value Survey. Our measure of religiosity is negatively correlated with per capita income. Development apparently causes religiosity to fall to about half its pre-modern level. Most...

One branch of the aid effectiveness literature (AEL) analyzes conditional models where aid effectiveness depends upon a conditioning variable z. The leading candidates for z are a good policy index and aid itself, so that the model has an aid squared term. In this paper, meta-analysis techniques...

Three families of social capital concepts are discussed: (fa1) trust, (fa2) ease of cooperation, and (fa3) network. In the language of game theory, social capital is the excess propensity to play cooperative solutions in prisoners' dilemma games. The three families lead to different definitions,...