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The Measurement and Determination of Institutional Change: Evidence from Transition Economics

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  • Raiser, M.
  • Di Tommaso, M.L.
  • Weeks, M.

Abstract

It is widely appreciated that institution building is at the heart of the transition process. Without functioning institutions markets cannot work effectively and the sustainability of the economic transition process can be undermined. The crisis in Russia provided just one piece of evidence in this regard. While institutions are central to the transition process, institutional reform is not an area that is well understood by researchers and policy makers alike. In this paper we examine the determinants of institutional change using a panel dataset comprising 25 transition economics. One of the defining characteristics of our approach is that we treat institutional change as a multidimensional unobserved variable, accounting for the fact each of our indicators represents a noisy signal.

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File URL: http://www.econ.cam.ac.uk/research/repec/cam/pdf/wp0029.pdf
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Paper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0029.

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Date of creation: Dec 2000
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Handle: RePEc:cam:camdae:0029

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  14. Muthen, Bengt, 1983. "Latent variable structural equation modeling with categorical data," Journal of Econometrics, Elsevier, Elsevier, vol. 22(1-2), pages 43-65.
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Cited by:
  1. Yorgos Rizopoulos & Nikolay Nenovsky, 2004. "Peut-on mesurer le changement institutionnel du régime monétaire ?," Revue d'Économie Financière, Programme National Persée, Programme National Persée, vol. 75(2), pages 17-36.
  2. Martin Raiser & Maria L. Di Tommaso & Melvyn Weeks, 2001. "The Measurements and Determinants of Institutional Change: Evidence from Transition Economies," Working Papers 60, European Bank for Reconstruction and Development, Office of the Chief Economist.
  3. Axel Dreher & Christos Kotsogiannis & Steve McCorriston, 2004. "Corruption Around The World: Evidence From A Structural Model," Public Economics, EconWPA 0406004, EconWPA.
  4. Wiebke Kuklys, 2004. "Measuring Standard of Living in the UK - An Application of Sen's Functioning Approach Using Structural Equation Models," Papers on Strategic Interaction, Max Planck Institute of Economics, Strategic Interaction Group 2004-11, Max Planck Institute of Economics, Strategic Interaction Group.
  5. Nikolay Nenovsky & Yorgos Rizopoulos, 2004. "Measuring the Institutional Change of the Monetary Regime in a Political Economy Perspective (Groups of interest and monetary variables during the Currency Board introduction in Bulgaria)," William Davidson Institute Working Papers Series wp732, William Davidson Institute at the University of Michigan.
  6. Judy Day & Peter Taylor, 2004. "Institutional Change and Debt-based Corporate Governance: A Comparative Analysis of Four Transition Economies," Journal of Management and Governance, Springer, Springer, vol. 8(1), pages 73-115, March.
  7. Sharun W. Mukand & Dani Rodrik, 2005. "In Search of the Holy Grail: Policy Convergence, Experimentation, and Economic Performance," American Economic Review, American Economic Association, American Economic Association, vol. 95(1), pages 374-383, March.
  8. DELL'ANNO, Roberto & VILLA, Stefania, 2012. "Growth in Transition Countries: Big Bang versus Gradualism," CELPE Discussion Papers 122, CELPE - Centre of Labour Economics and Economic Policy, University of Salerno, Italy.
  9. Marcello Signorelli & Enrico Marelli, 2007. "Institutional change, regional features and aggregate performance in eight EU’s transition countries," Quaderni del Dipartimento di Economia, Finanza e Statistica, Università di Perugia, Dipartimento Economia, Finanza e Statistica 37/2007, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
  10. Judy Day & Peter Taylor, 2010. "Trajectories of accounting and auditing development in EU enlargement: comparative analysis of ten new member states," Journal of Management and Governance, Springer, Springer, vol. 14(4), pages 313-350, November.
  11. Valentin Cojanu, 2009. "A Critical View of the Institutional Solution in Economics," Transition Studies Review, Springer, Springer, vol. 16(3), pages 627-634, October.
  12. Foders, Federico & Piazolo, Daniel & Schweickert, Rainer, 2002. "Fit für die EU? Indikatoren zum Stand der Wirtschaftsreformen in den Kandidatenländern," Kiel Discussion Papers 389/390, Kiel Institute for the World Economy (IfW).

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