Do Institutions Cause Growth?. Edward Glaeser, Rafael La Porta, Florencio Lopez-de-Silanes, Andrei Shleifer. Context of Paper. Recent literature: good institutions are important necessary conditions for growth
Do Institutions Cause Growth?
Edward Glaeser, Rafael La Porta, Florencio Lopez-de-Silanes, Andrei Shleifer
1)Democracy as a necessary condition to growth
2)Democracy as a result of growth
More negotiation/voting and less violence to resolve conflicts because of education
Eventually democracy because increased education and wealth
Are measures of institutions used in recent literature valid measures with this definition in mind?
Clearly not a measure of durable institutions providing constraints
again, clearly ex post outcomes