In randomized control laboratory experiments, we find that those primed to think about markets exhibit more trusting behavior. We randomly and unconsciously prime experimental participants to think about markets and trade. We then ask them to play a trust game involving an anonymous stranger. We...

We propose a general theory that explains the extent of the state and accounts for related institutions as byproducts of the state's extractive technology. We posit further that this extractive technology is determined by the transparency of the production technology. This theory is applied to...

“Sustainable prosperity” denotes an economy that generates stable and equitable growth for a large and growing middle class. From the 1940s into the 1970s, the United States appeared to be on a trajectory of sustainable prosperity, especially for white-male members of the U.S. labor force....

What are the effects of culture on economic institutions? Many see an essential role for culture in institutional development. This paper systematically considers twelve dimensions of culture on two dimensions of economic institutions: liberal economic institutions and the building of large,...

What explains the observed incumbency effects in emerging democracies? Unlike their counterparts in advanced democracies, legislative incumbents in emerging democracies are disadvantaged. Existing research attributes this to “endemic voter discontent,” arguing that the preponderance of venal...

During the last decade, governments have shown increasing interest in curbing the growth of regulation by requiring that one or more regulations be removed before a new regulation can be added. We provide a comprehensive review of this innovation in regulatory policy. There are three main...

In this paper I theoretically argue that people weigh specialization gains against trade costs when they decide whether to specialize and trade or self-produce all goods by themselves. Trade costs relate to institutional quality. Thus, more people participate in trade under better institutions....

This chapter offers a retrospective account of Baumol's contribution in light of its influence on economics and entrepreneurship studies. The first section describes the core arguments of his original paper. The second section discusses its impact on the entrepreneurship discipline. Following...

Why do some societies fail to adopt more efficient political and economic institutions in response to changing economic conditions? And why do such conditions sometimes generate conservative ideological backlashes and, at other times, progressive social and political movements? We propose an...

What are the effects of culture on economic institutions? Many see an essential role for culture in institutional development. This paper systematically considers twelve dimensions of culture on two dimensions of economic institutions: liberal economic institutions and the building of large,...