IDEAS home Printed from https://ideas.repec.org/p/war/wpaper/2016-29.html
   My bibliography  Save this paper

De jure and de facto institutions – disentangling the interrelationships

Author

Listed:
  • Jacek Lewkowicz

    (Faculty of Economic Sciences, University of Warsaw)

  • Katarzyna Metelska-Szaniawska

    (Faculty of Economi Sciences, University of Warsaw)

Abstract

In this paper we contribute to the debate on the nature of institutions and their economic effects by extending the focus to the de jure – de facto institutional distinction. Firstly, we define and conceptualize de facto institutions, as well as elaborate on their place in the broad institutional system and identification. Then we investigate the possible interrelationships between de facto and de jure institutions. Finally, we make a link between these interrelationships and economic outcomes. In this way the paper fills an underexploited niche in institutional research, which is a major background for law and economics.

Suggested Citation

  • Jacek Lewkowicz & Katarzyna Metelska-Szaniawska, 2016. "De jure and de facto institutions – disentangling the interrelationships," Working Papers 2016-29, Faculty of Economic Sciences, University of Warsaw.
  • Handle: RePEc:war:wpaper:2016-29
    as

    Download full text from publisher

    File URL: http://www.wne.uw.edu.pl/index.php/download_file/3161/
    File Function: First version, 2016
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Timothy Besley & Anne Case, 2003. "Political Institutions and Policy Choices: Evidence from the United States," Journal of Economic Literature, American Economic Association, vol. 41(1), pages 7-73, March.
    2. Katarzyna Metelska‐Szaniawska, 2021. "Post‐socialist constitutions: The de jure–de facto gap, its effects and determinantsa," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 29(2), pages 175-196, April.
    3. Berkowitz, Daniel & Pistor, Katharina & Richard, Jean-Francois, 2003. "Economic development, legality, and the transplant effect," European Economic Review, Elsevier, vol. 47(1), pages 165-195, February.
    4. Voigt, Stefan, 2013. "How (Not) to measure institutions," Journal of Institutional Economics, Cambridge University Press, vol. 9(1), pages 1-26, March.
    5. Shirley, Mary M., 2013. "Measuring institutions: how to be precise though vague," Journal of Institutional Economics, Cambridge University Press, vol. 9(1), pages 31-33, March.
    6. G. Hodgson, 2007. "What Are Institutions?," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 8.
    7. Oliver E. Williamson, 2000. "The New Institutional Economics: Taking Stock, Looking Ahead," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 595-613, September.
    8. Yoshinobu Zasu, 2007. "Sanctions by Social Norms and the Law: Substitutes or Complements?," The Journal of Legal Studies, University of Chicago Press, vol. 36(2), pages 379-396, June.
    9. George Baker & Robert Gibbons & Kevin J. Murphy, 1994. "Subjective Performance Measures in Optimal Incentive Contracts," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(4), pages 1125-1156.
    10. Daron Acemoglu & Matthew O. Jackson, 2017. "Social Norms and the Enforcement of Laws," Journal of the European Economic Association, European Economic Association, vol. 15(2), pages 245-295.
    11. Cooter, Robert, 1998. "Expressive Law and Economics," Berkeley Olin Program in Law & Economics, Working Paper Series qt3w34j60j, Berkeley Olin Program in Law & Economics.
    12. Acemoglu,Daron & Robinson,James A., 2009. "Economic Origins of Dictatorship and Democracy," Cambridge Books, Cambridge University Press, number 9780521671422, September.
    13. Claudia Williamson, 2009. "Informal institutions rule: institutional arrangements and economic performance," Public Choice, Springer, vol. 139(3), pages 371-387, June.
    14. Voigt, Stefan, 2013. "How (not) to measure institutions: a reply to Robinson and Shirley," Journal of Institutional Economics, Cambridge University Press, vol. 9(1), pages 35-37, March.
    15. Voigt, Stefan & Gutmann, Jerg & Feld, Lars P., 2015. "Economic growth and judicial independence, a dozen years on: Cross-country evidence using an updated Set of indicators," European Journal of Political Economy, Elsevier, vol. 38(C), pages 197-211.
    16. Ernst Fehr & Simon Gaechter, "undated". "Do Incentive Contracts Crowd out Voluntary Cooperation?," IEW - Working Papers 034, Institute for Empirical Research in Economics - University of Zurich.
    17. Lee J. Alston & Edwyna Harris & Bernardo Mueller, 2009. "De Facto and De Jure Property Rights: Land Settlement and Land Conflict on the Australian, Brazilian and U.S. Frontiers," CEPR Discussion Papers 607, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    18. Bernstein, Lisa, 1992. "Opting Out of the Legal System: Extralegal Contractual Relations in the Diamond Industry," The Journal of Legal Studies, University of Chicago Press, vol. 21(1), pages 115-157, January.
    19. Sergio G. Lazzarini, 2004. "Order with Some Law: Complementarity versus Substitution of Formal and Informal Arrangements," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 20(2), pages 261-298, October.
    20. 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.
    21. Edward L. Glaeser & Bruce Sacerdote & José A. Scheinkman, 1996. "Crime and Social Interactions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(2), pages 507-548.
    22. Hanretty, Chris, 2010. "Explaining the De Facto Independence of Public Broadcasters," British Journal of Political Science, Cambridge University Press, vol. 40(1), pages 75-89, January.
    23. Greif, Avner, 1998. "Historical and Comparative Institutional Analysis," American Economic Review, American Economic Association, vol. 88(2), pages 80-84, May.
    24. Cooter, Robert, 1998. "Expressive Law and Economics," The Journal of Legal Studies, University of Chicago Press, vol. 27(2), pages 585-608, June.
    25. Frey, Bruno S & Oberholzer-Gee, Felix, 1997. "The Cost of Price Incentives: An Empirical Analysis of Motivation Crowding-Out," American Economic Review, American Economic Association, vol. 87(4), pages 746-755, September.
    26. Posner, Richard A, 1997. "Social Norms and the Law: An Economic Approach," American Economic Review, American Economic Association, vol. 87(2), pages 365-369, May.
    27. Robinson, James A., 2013. "Measuring institutions in the Trobriand Islands: a comment on Voigt's paper," Journal of Institutional Economics, Cambridge University Press, vol. 9(1), pages 27-29, March.
    28. Aslanian, Sebouh, 2006. "Social capital, ‘trust’ and the role of networks in Julfan trade: informal and semi-formal institutions at work," Journal of Global History, Cambridge University Press, vol. 1(3), pages 383-402, November.
    29. Huang, Peter H & Wu, Ho-Mou, 1994. "More Order without More Law: A Theory of Social Norms and Organizational Cultures," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 10(2), pages 390-406, October.
    30. Anthony Downs, 1957. "An Economic Theory of Political Action in a Democracy," Journal of Political Economy, University of Chicago Press, vol. 65(2), pages 135-135.
    31. Acemoglu, Daron, 1995. "Reward structures and the allocation of talent," European Economic Review, Elsevier, vol. 39(1), pages 17-33, January.
    32. Svetozar Pejovich & Enrico Colombatto, 2008. "Law, Informal Rules and Economic Performance," Books, Edward Elgar Publishing, number 4198.
    33. Silvio Borner & Aymo Brunetti & Beatrice Weder, 1995. "Political Credibility and Economic Development," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-24049-4, October.
    34. Ferrer, Rosa, 2010. "Breaking the law when others do: A model of law enforcement with neighborhood externalities," European Economic Review, Elsevier, vol. 54(2), pages 163-180, February.
    35. W. J. Henisz, 2000. "The Institutional Environment for Economic Growth," Economics and Politics, Wiley Blackwell, vol. 12(1), pages 1-31, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Katarzyna Metelska-Szaniawska & Jacek Lewkowicz, 2021. "Post-socialist “illiberal democracies”: do de jure constitutional rights matter?," Constitutional Political Economy, Springer, vol. 32(2), pages 233-265, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jacek LEWKOWICZ & Katarzyna METELSKA-SZANIAWSKA, 2021. "De Jure and De Facto Institutions: Implications for Law and for Economics," Ekonomista, Polskie Towarzystwo Ekonomiczne, issue 6, pages 758-776.
    2. Katarzyna Metelska-Szaniawska & Jacek Lewkowicz, 2021. "Post-socialist “illiberal democracies”: do de jure constitutional rights matter?," Constitutional Political Economy, Springer, vol. 32(2), pages 233-265, June.
    3. Yoshinobu Zasu, 2007. "Sanctions by Social Norms and the Law: Substitutes or Complements?," The Journal of Legal Studies, University of Chicago Press, vol. 36(2), pages 379-396, June.
    4. Daron Acemoglu & Matthew O. Jackson, 2017. "Social Norms and the Enforcement of Laws," Journal of the European Economic Association, European Economic Association, vol. 15(2), pages 245-295.
    5. ROUGIER Eric, 2015. ""The parts and the whole”: Unbundling and re-bundling institutional systems and their effect on economic development," Cahiers du GREThA (2007-2019) 2015-12, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    6. 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.
    7. Izabela Ostoj, 2019. "On the validity of the division into formal and informal institutions," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 18(1), pages 61-72, March.
    8. Amendolagine, Vito & von Jacobi, Nadia, 2023. "Symbiotic relationships among formal and informal institutions: Comparing five Brazilian cultural ecosystems," Economic Systems, Elsevier, vol. 47(3).
    9. Nuno Garoupa & Rok Spruk, 2024. "Measuring Political Institutions in the Long Run: A Latent Variable Analysis of Political Regimes, 1810–2018," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 173(3), pages 867-914, July.
    10. Christian Bjørnskov, 2015. "Constitutional property rights protection and economic growth: evidence from the post-communist transition," Constitutional Political Economy, Springer, vol. 26(3), pages 247-280, September.
    11. Gutmann, Jerg & Voigt, Stefan, 2018. "The rule of law: Measurement and deep roots," European Journal of Political Economy, Elsevier, vol. 54(C), pages 68-82.
    12. Papageorgiadis, Nikolaos & McDonald, Frank & Wang, Chengang & Konara, Palitha, 2020. "The characteristics of intellectual property rights regimes: How formal and informal institutions affect outward FDI location," International Business Review, Elsevier, vol. 29(1).
    13. Seidler, Valentin, 2018. "Copying informal institutions: the role of British colonial officers during the decolonization of British Africa," Journal of Institutional Economics, Cambridge University Press, vol. 14(2), pages 289-312, April.
    14. Sun, Huojun & Bigoni, Maria, 2018. "A fine rule from a brutish world? An experiment on endogenous punishment institution and trust," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 77(C), pages 158-169.
    15. Marion Payen & Patrick Rondé, 2020. "Culture, Institutions and Economic Growth," Working Papers of BETA 2020-18, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    16. Aparicio, Sebastian & Audretsch, David & Noguera, Maria & Urbano, David, 2022. "Can female entrepreneurs boost social mobility in developing countries? An institutional analysis," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    17. Fehr, Ernst & Falk, Armin, 2002. "Psychological foundations of incentives," European Economic Review, Elsevier, vol. 46(4-5), pages 687-724, May.
    18. Nadia von Jacobi & Vito Amendolagine, 2021. "What Feeds on What? Networks of Interdependencies between Culture and Institutions," DEM Working Papers 2021/13, Department of Economics and Management.
    19. Bohnet, Iris & Frey, Bruno S. & Huck, Steffen, 2001. "More Order with Less Law: On Contract Enforcement, Trust, and Crowding," American Political Science Review, Cambridge University Press, vol. 95(1), pages 131-144, March.
    20. Yasir Khan & Attiya Yasmin Javid, 2015. "The Impact of Formal and Informal Institutions on Economic Performance: A Cross-Country Analysis," PIDE-Working Papers 2015:130, Pakistan Institute of Development Economics.

    More about this item

    Keywords

    new institutional economics; de jure institutions; de facto institutions; formal institutions; informal institutions; institutional interrelationships;
    All these keywords.

    JEL classification:

    • B40 - Schools of Economic Thought and Methodology - - Economic Methodology - - - General
    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • K19 - Law and Economics - - Basic Areas of Law - - - Other
    • P21 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Planning, Coordination, and Reform

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:war:wpaper:2016-29. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marcin Bąba (email available below). General contact details of provider: https://edirc.repec.org/data/fesuwpl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.