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Pitfalls to Avoid when Measuring Institutions: Is 'Doing Business' Damaging Business?

  • Benito Arruñada

Over recent years, both governments and international aid organizations have been devoting large amounts of resources to "simplifying" the procedures for setting up and formalizing firms. Many of these actions have focused on reducing the initial costs of setting up the firm, disregarding the more important role of business registers as a source of reliable information for judges, government departments and, above all, other firms. This reliable information is essential for reducing transaction costs in future dealings with all sorts of economic agents, both public and private. The priorities of reform policies should therefore be thoroughly reviewed, stressing the value of the legal institutions rather than trivializing them as is often the case.

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Paper provided by Barcelona Graduate School of Economics in its series Working Papers with number 451.

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Date of creation: Apr 2010
Date of revision:
Handle: RePEc:bge:wpaper:451
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  1. Benito Arruñada, 2007. "Market and institutional determinants in the regulation of conveyancers," Economics Working Papers 1034, Department of Economics and Business, Universitat Pompeu Fabra.
  2. Simeon Djankov & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2002. "The Regulation of Entry," The Quarterly Journal of Economics, Oxford University Press, vol. 117(1), pages 1-37.
  3. Arrunada, Benito & Garoupa, Nuno, 2005. "The Choice of Titling System in Land," Journal of Law and Economics, University of Chicago Press, vol. 48(2), pages 709-27, October.
  4. Field, Erica Marie, 2005. "Property Rights and Investment in Urban Slums," Scholarly Articles 3634150, Harvard University Department of Economics.
  5. World Bank & International Finance Corporation, 2006. "Doing Business 2007 : How to Reform," World Bank Publications, The World Bank, number 7245.
  6. Benito Arruñada, 2001. "Property enforcement as organized consent," Economics Working Papers 564, Department of Economics and Business, Universitat Pompeu Fabra.
  7. Erica Field, 2005. "Property Rights and Investment in Urban Slums," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 279-290, 04/05.
  8. Barzel,Yoram, 1997. "Economic Analysis of Property Rights," Cambridge Books, Cambridge University Press, number 9780521597135.
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