This paper opens with a discussion of the types of institutions that allow markets to perform adequately. While we can … identify in broad terms what these are, there is no unique mapping between markets and the non-market institutions that … institutions. A range of evidence indicates that participatory democracies enable higher-quality growth. …

We estimate the respective contributions of institutions, geography, and trade in determining income levels around the … world, using recently developed instruments for institutions and trade. Our results indicate that the quality of … institutions 'trumps' everything else. Once institutions are controlled for, measures of geography have at best weak direct effects …

We estimate the interrelationships among economic institutions, political institutions, openness, and income levels … openness and better institutions, but these effects are not very strong. Rule of law and democracy tend to be mutually …

The focus of policy reform in developing countries has moved from getting prices right to getting institutions right …, and accordingly countries are increasingly being advised to move towards "best-practice" institutions. This paper argues … that appropriate institutions for developing countries are instead "second-best" institutions - those that take into …