We analyze the endogenous evolution of economic and political institutions and the interdependencies with the process of economic development. Favorable economic institutions ensure the appropriability of rents in form of a state of law. We study the conditions under which a state of law can be...

Constitutionalism is the idea that the powers of government can and should be limited, and that its authority flows from enforcing these limitations. In constitution making and analysis, the right or power of the government to tax seems almost superfluous. No real analysis goes into tying down...

In this article, we provide a broad overview of the interplay among cognition, belief systems, and institutions, and how they affect economic performance. We argue that a deeper understanding of institutions emergence, their working properties, and their effect on economic and political outcomes...