Institutions play a critical role in the economic development of a country. The correlation between these two variables has been acknowledged in economic literature. However, the causal relationship is still under debate although there is a tendency towards the notion that institutions influence...

Enste and Wicher suggest that political regulation is always wealth-reducing. However, their analysis neglects various relevant determinants of the wealth indicator. Economic wealth cannot be estimated from the quantity of regulation, as quality and other aspects matter. Hence, political acumen...