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What Determines Rule of Law? An Empirical Investigation of Rival Models

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  • Gustav Hansson

Abstract

In the growing literature on the creation of institutions, the theories emphasizing colonial origin ( Mauro, 1995 ), legal origin and religious affiliation ( La Porta et al., 1999 ), Western European influence ( Hall and Jones, 1999 ), and settler mortality ( Acemoglu et al., 2001 ), have been especially influential. The validity and influence of these studies rests heavily on empirical modeling, which, since the theories are obviously closely related, might actually capture the same primary mechanism. It is therefore unclear whether the empirical relationships found are the same or if they are different. Therefore, this paper takes the empirical models seriously in order to discriminate among the existing models and to identify the model and variables that best explain the variation in institutional quality. The aim of this paper is thus to provide answers to the following questions: (i) Is there one model which explains more of the variation in institutional quality than the other models? (ii) Do these models capture the same information? And (iii), if we let the information in the data decide, which combination of variables would be selected? Copyright 2009 Blackwell Publishing Ltd.

Suggested Citation

  • Gustav Hansson, 2009. "What Determines Rule of Law? An Empirical Investigation of Rival Models," Kyklos, Wiley Blackwell, vol. 62(3), pages 371-393, August.
  • Handle: RePEc:bla:kyklos:v:62:y:2009:i:3:p:371-393
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    References listed on IDEAS

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    1. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 1999. "The Quality of Government," Journal of Law, Economics, and Organization, Oxford University Press, vol. 15(1), pages 222-279, April.
    2. Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, Oxford University Press, vol. 114(1), pages 83-116.
    3. 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, September.
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    10. Albouy, David, 2006. "The Colonial Origins of Comparative Development: An Investigation of the Settler Mortality Data," Center for International and Development Economics Research, Working Paper Series qt8kt576x8, Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley.
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    Cited by:

    1. Luis Angeles, 2011. "Institutions, Property Rights, and Economic Development in Historical Perspective," Kyklos, Wiley Blackwell, vol. 64(2), pages 157-177, May.
    2. Gema Fabro & José Aixalá, 2013. "Do the Models of Institutional Quality Differ According to the Income Level of the Countries? The Case of the Low-Income Countries," Hacienda Pública Española, IEF, vol. 206(3), pages 11-26, September.
    3. Lisa Anderson & Jennifer Mellor & Jeffrey Milyo, 2010. "Did the Devil Make Them Do It? The Effects of Religion in Public Goods and Trust Games -super-," Kyklos, Wiley Blackwell, vol. 63(2), pages 163-175, May.
    4. Peter Foldvari, 2017. "De Facto Versus de Jure Political Institutions in the Long-Run: A Multivariate Analysis, 1820–2000," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 130(2), pages 759-777, January.
    5. Jerg Gutmann & Stefan Voigt, 2015. "The Rule of Law: Measurement and Deep Roots," CESifo Working Paper Series 5670, CESifo Group Munich.

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