How (Not) to Measure Institutions

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How (Not) to Measure Institutions

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Stefan Voigt () (MACIE (Philipps University Marburg), Barfüßertor 2, 35032 Marburg, Germany; CESifo; ICER, Torino)

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Stefan Voigt

Abstract

The statement “institutions matter” has become commonplace. A precondition for it to be supported by empirical evidence, is, however, that institutions are measurable. Glaeser et al. (2004) attacks many studies claiming to prove the relevance of institutions for economic development as being based on flawed measures of institutions, or not even on institutions at all. This paper shows that their criticism deserves to be taken seriously, but that it is somewhat overblown. Some of the difficulties in measuring institutions are described and some ways of measuring them are proposed.

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Publisher Info
Paper provided by Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung) in its series MAGKS Papers on Economics with number 200937.

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Length: 27 pages
Date of creation: 2009
Date of revision:
Publication status: Forthcoming in
Handle: RePEc:mar:magkse:200937

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Find related papers by JEL classification:
B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
K00 - Law and Economics - - General - - - General (including Data Sources and Description)
O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
O43 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

This paper has been announced in the following NEP Reports:

NEP-ALL-2009-09-11 (All new papers)
NEP-CBE-2009-09-11 (Cognitive & Behavioural Economics)
NEP-HPE-2009-09-11 (History & Philosophy of Economics)
NEP-PKE-2009-09-11 (Post Keynesian Economics)

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This page was last updated on 2009-11-25.

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