Where does the evidence stand on institutions, development and growth?
This paper explores the empirical evidence on institutions and growth. The empirical evidence on institutions ranges from historical studies to econometric analyses, with different studies making very different theoretical commitments as to what institutions means and how they affect economic development. This paper argues that this breadth of evidentiary forms has given credibility to empirical institutional economics, allowing for the emergence of robust evidence of the importance of institutions and robust recommendations for policy.
Author: Steven Durlauf