Bruno, Randolph Luca - Institute for the Study of Labor (IZA) - 2008
assets or to invest. The model predicts that high uncertainty and potential sunk costs in a situation of rule of law … asset-stripping are high, this is instrumental to a rule of law enforcement, a Pareto-dominant equilibrium. High … institutional quality can increase the likelihood of rule of law enforcement if there is enough information about the strength of …