Working Paper: CEPR ID: DP3882
Authors: Simeon Djankov; Edward L. Glaeser; Rafael La Porta; Florencio López-de-Silanes; Andrei Shleifer
Abstract: In recent years, comparative economics experienced a revival, with a new focus on comparing capitalist economies. The theme of the new research is that institutions exert a profound influence on economic development. We argue that, to understand capitalist institutions, one needs to understand the basic trade-off between the costs of disorder and those of dictatorship. We then apply this logic to study the structure of efficient institutions, the consequences of colonial transplantation, and the politics of institutional choice.
Keywords: Colonial Transplantations; Comparative Economics; Institutions; Transition
JEL Codes: P00; P10; P20; P50
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| institutions (D02) | economic development (O29) |
| institutional quality (L15) | economic outcomes (F61) |
| state power (P26) | disorder (C69) |
| state power (P26) | dictatorship (P16) |
| historical context + institutional design (D02) | economic performance (P17) |
| institutional choices (D02) | economic outcomes (F61) |
| strategies of social control (P37) | economic efficiency (D61) |
| strategies of social control (P37) | social stability (I31) |