instead analyze the effect of institutions on civil war, controlling for income per capita. In our set up, institutions are … endogenous and colonial origins affect civil wars through their legacy on institutions. Our results indicate that institutions … civil war. In particular, an improvement in institutions from the median value in the sample to the 75th percentile is …

they destroy the balance sheets of domestic banks. In our model, better financial institutions allow banks to be more … declines in private credit, and these declines should be larger in countries where financial institutions are more developed …