The current research emphasis on institutions as key determinants of economic performance has uncovered important questions for further research. For example, if institutions are central to economic performance, then what explains observed differences in performance across parts of one economy sharing similar institutions? This paper suggests that two broad aspects of institutions are involved - infrastructure and superstructure. It develops and then applies a simple model to 50 U.S. reservation economies to assess how the two aspects affect income. The results show that resources and resource productivity are necessary but insufficient determinants of income in reservation economies. Human capital is a constraint for two institutional reasons. First, infrastructures for fostering human capital are either inadequate or inappropriate. Second, the local superstructure seems resistant to existing infrastructures that were supposed to enhance human capital formation. Since infrastructural and superstructural aspects of institutions are competitive rather than complementary, the Nelson- Phelps channel for transmitting external technology into USRATLs appears clogged up.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Length: 35 pages Date of creation: 04 May 2005 Date of revision: Handle: RePEc:wpa:wuwpge:0505001
Note: Type of Document - wpd; pages: 35. An updated edition of an early version. Anonymous feedback highly appreciated. Figures available upon request. Contact details of provider: Web page: http://129.3.20.41
For technical questions regarding this item, or to correct its listing, contact: (EconWPA).
Find related papers by JEL classification: O51 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration R30 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location - - - General F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
This paper has been announced in the following NEP Reports:
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Edward L. Glaeser & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2004.
"Do Institutions Cause Growth?,"
Journal of Economic Growth,
Springer, vol. 9(3), pages 271-303, 09.
[Downloadable!]
Other versions:
Edward L. Glaeser & Rafael La Porta & Florencio Lopez-de-Silane & Andrei Shleifer, 2004.
"Do Institutions Cause Growth?,"
NBER Working Papers
10568, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)