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Constitutional design and economic performance

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  • Alvaro Montenegro

Abstract

This paper is motivated by the belief that some cultural traits favor economic performance more than others. One trait examined is the ease with which individuals in a community drift away from the spirit of the law for their own benefit; this, it is argued, generates verbose legislation and high-transaction-cost institutions with deleterious effects on economic performance. An empirical comparison between the number of articles in a country's constitution, as a proxy for length and lack of simplicity, and economic performance as measured by GDP per capita finds that no country with a high GDP per capita has a long constitution or, restated, that long constitutions are invariably associated with low levels of GDP per capita. Copyright Kluwer Academic Publishers 1995

Suggested Citation

  • Alvaro Montenegro, 1995. "Constitutional design and economic performance," Constitutional Political Economy, Springer, vol. 6(2), pages 161-169, June.
  • Handle: RePEc:kap:copoec:v:6:y:1995:i:2:p:161-169
    DOI: 10.1007/BF01303255
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    1. Arthur, W Brian, 1989. "Competing Technologies, Increasing Returns, and Lock-In by Historical Events," Economic Journal, Royal Economic Society, vol. 99(394), pages 116-131, March.
    2. Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1991. "The Allocation of Talent: Implications for Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 503-530.
    3. Robert Summers & Alan Heston, 1991. "The Penn World Table (Mark 5): An Expanded Set of International Comparisons, 1950–1988," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 327-368.
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    Cited by:

    1. Peter Kurrild-Klitgaard, 2004. "Ulysses and the Rent-Seekers: The Benefits and Challenges of Constitutional Constraints on Leviathan," Advances in Austrian Economics, in: The Dynamics of Intervention: Regulation and Redistribution in the Mixed Economy, pages 245-278, Emerald Group Publishing Limited.
    2. R. Warren Anderson, 2016. "Native American reservation constitutions," Constitutional Political Economy, Springer, vol. 27(4), pages 377-398, December.
    3. Pavlik, Jamie Bologna & Jahan, Israt & Young, Andrew T., 2023. "Do longer constitutions corrupt?," European Journal of Political Economy, Elsevier, vol. 77(C).
    4. Z A Spindler & X de Vanssay, 2002. "Constitutions And Economic Freedom," South African Journal of Economics, Economic Society of South Africa, vol. 70(6), pages 1135-1147, September.
    5. Andrew T. Young, 2019. "How Austrians can contribute to constitutional political economy (and why they should)," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 32(4), pages 281-293, December.
    6. Voigt, Stefan, 2009. "Explaining constitutional garrulity," International Review of Law and Economics, Elsevier, vol. 29(4), pages 290-303, December.
    7. Justin Callais & Andrew T. Young, 2022. "Does rigidity matter? Constitutional entrenchment and growth," European Journal of Law and Economics, Springer, vol. 53(1), pages 27-62, February.
    8. Justin Callais & Andrew T. Young, 2021. "Does constitutional entrenchment matter for economic freedom?," Contemporary Economic Policy, Western Economic Association International, vol. 39(4), pages 808-830, October.
    9. David Ahnen & Peter T, Calcagno, 2019. "Constitutions and Social Trust: An Analysis of the US States," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 34(Fall 2019), pages 11-33.
    10. Christian Bjørnskov & Stefan Voigt, 2014. "Constitutional verbosity and social trust," Public Choice, Springer, vol. 161(1), pages 91-112, October.

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