There is a growing policy interest in the role of financial structure in promoting development. However, very little is known about how different financial structures emerge and evolve. In this paper we empirically assess the political origins of financial structure. Using difference-in...

We theoretically and empirically examine the relationship between natural resource revenues and financial development. In the theoretical part, we present a politico-economic model in which contract enforcement is low and decreasing in resource revenues when political institutions are poor, but...

As poor countries deplete their natural resources, for increased consumption to be sustainable some of the revenues should be invested in other public assets. Further, since such countries typically have acute shortages of public capital, the finance from resource depletion is an opportunity for...

Democracy and media freedom have been suggested as useful tools in the ?ght against political corruption, but so far their interplay in this ?ght has received scant attention. We present a game theoretic model which predicts that the corruption-reducing e?ect of democracy becomes stronger as...

Recent research shows that the majority of cross-national variation in institutions is related to history. The within variation however is somewhat less explored. Using panel data covering the periods 1865–1940 and 1980–2000 and 31 and 103 countries respectively, we find that the within...

Using National Sample Survey data for rural India we examine the incidence of capture in two workfare programs in rural India: the Rural Public Works and the Food for Work Programs for 1993-1994 and 2004-2005 respectively. We discover a high degree of program capture among the general...

This paper studies the distributional impact of commodity price shocks over the both the short and very long run. Using a GARCH model, we find that Australia experienced more volatility than many commodity exporting developing countries over the periods 1865-1940 and 1960-2007. A single equation...

It has long been hypothesised that public works programmes, in addition to the welfare effect on those directly employed, can influence equilibrium wage rates. In this paper we test the impact of the Indian government’s major public works programme, the National Rural Employment Guarantee...