Institutional reforms now and benefits tomorrow: How soon is tomorrow?
This paper investigates the timing of the impact of changes in checks and balances on macroeconomic efficiency in a panel of countries. Using Battese and Coelli’s one-stage approach, we find that increasing checks and balances results in greater efficiency. Furthermore, the impact of institutional changes on efficiency is delayed, with a full effect showing after five to six years. This finding remains robust after distinguishing developed and developing countries, including country-fixed effects and using alternative functional forms of the production frontier and alternative measures of checks and balances. The relation is also robust to controlling for endogeneity.
|Date of creation:||2009|
|Publication status:||Published in: Economics and politics (2009) v.21 n° 2,p.319-357|
|Note:||This is a translation of: Institutional reforms now and benefits tomorrow: How soon is tomorrow?|
|Contact details of provider:|| Postal: CP135, 50, avenue F.D. Roosevelt, 1050 Bruxelles|
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