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Institutions and Development:A View from Below Author info | Abstract | Publisher info | Download info | Related research | Statistics Rohini Pande () (Economic Growth Center, Yale University)
Christopher Udry (Economic Growth Center, Yale University)
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In this paper we argue the case for greater exploitation of synergies between research on specific institutions based on micro-data and the big questions posed by the institutions and growth literature. To date, the macroeconomic literature on institutions and growth has largely relied on cross-country regression evidence. This has provided compelling evidence for a causal link between a cluster of ‘good’ institutions and more rapid long run growth. However, an inability to disentangle the effects of specific institutional channels on growth or to understand the impact of institutional change on growth will limit further progress using a cross-country empirical strategy. We suggest two research programs based on micro-data that have significant potential. The first uses policy-induced variation in specific institutions within countries to understand how these institutions influence economic activity. The second exploits the fact that the incentives provided by a given institutional context often vary with individuals’ economic and political status. This can help us better understand how institutional change arises in response to changing economic and demographic pressures.
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Paper provided by Economic Growth Center, Yale University in its series Working Papers with number
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Length: 59 pages
Date of creation: Nov 2005Date of revision:
Handle: RePEc:egc:wpaper:928Contact details of provider: Postal: PO Box 8269, New Haven CT 06520-8269 Phone: (203) 432-3610 Fax: (203) 432-3898 Web page: http://www.econ.yale.edu/ More information through EDIRC
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Keywords: Institutions ; Growth ; Cross-Country Regressions ; Find related papers by JEL classification: O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements P51 - Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems
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