INFRASTRUCTURAL v. SUPERSTRUCTURAL EFFECTS OF INSTITUTIONS ON INCOME DETERMINATION ACROSS U.S. NATIVE AMERICAN ECONOMIES
AbstractInstitutions either promote or constrain economic performance, but which part of institutions does so, and why do economies sharing similar institutions sometimes perform differently? This paper applies a novel model that is capable of separating infrastructural and superstructural effects of institutions on aggregate and average income using a cross- section of 84 U.S. Native American economies (USNAEs). It finds that aggregate and average incomes for these economies depend mainly on the accumulation of physical resources. However, resources and resource productivity are necessary but insufficient determinants of income for institutional reasons. Infrastructures that aid human capital formation are inadequate so that even when the local superstructure is generally accepting of external technology, the impact of human capital on income (performance) remains modest. It appears that infrastructural and superstructural aspects of institutions are competitive rather than complementary, thereby weakening the Nelson-Phelps channel for transmitting external technology into USNAEs.
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Bibliographic InfoPaper provided by EconWPA in its series Development and Comp Systems with number 0505004.
Length: 34 pages
Date of creation: 04 May 2005
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infrastructural and superstructural constraints; institutions; human capital; U.S. Native American economies;
Find related papers by JEL classification:
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
- R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
- P47 - Economic Systems - - Other Economic Systems - - - Performance and Prospects
- O51 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
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