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Social divisions and institutions: Assessing institutional parameter variation

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  • Isaksson, Ann-Sofie

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

Abstract

This paper investigates the hypothesis that the association between property rights institutions and income is weaker in countries with high social divisions. It argues that social divisions should have a negative effect on perceived institutional inclusiveness, which in turn should depress institutional payoffs. Absent a property rights indicator that captures the perceived inclusiveness of institutions, social divisions should then weaken the observed association between property rights institutions and income. The empirical results support this hypothesis, and highlight the importance of evaluating whether the institutions measure used captures the institutional framework applying to the population at large.

Suggested Citation

  • Isaksson, Ann-Sofie, 2008. "Social divisions and institutions: Assessing institutional parameter variation," Working Papers in Economics 282, University of Gothenburg, Department of Economics, revised 24 Jan 2011.
  • Handle: RePEc:hhs:gunwpe:0282
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    Cited by:

    1. Adalgiso Amendola & Joshy Easaw & Antonio Savoia, 2013. "Inequality in developing economies: the role of institutional development," Public Choice, Springer, vol. 155(1), pages 43-60, April.
    2. Bigsten, Arne, 2014. "Dimensions of African inequality," WIDER Working Paper Series 050, World Institute for Development Economic Research (UNU-WIDER).
    3. Eiji Yamamura & Inyong Shin, 2013. "Decomposition of Ethnic Heterogeneity on Growth," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 55(1), pages 59-75, March.
    4. Ann-Sofie Isaksson, 2011. "Social divisions and institutions: assessing institutional parameter variation," Public Choice, Springer, vol. 147(3), pages 331-357, June.
    5. Arne Bigsten, 2014. "Dimensions of African Inequality," WIDER Working Paper Series wp-2014-050, World Institute for Development Economic Research (UNU-WIDER).
    6. Ann-Sofie Isaksson, 2015. "Unequal Property Rights: A Study of Land Right Inequalities in Rwanda," Oxford Development Studies, Taylor & Francis Journals, vol. 43(1), pages 60-83, March.

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    More about this item

    Keywords

    Property rights institutions; social divisions; parameter heterogeneity;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • P14 - Economic Systems - - Capitalist Systems - - - Property Rights
    • P26 - Economic Systems - - Socialist Systems and Transition Economies - - - Political Economy

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