Language serves two key functions. It enables communication between agents, which allows for the establishment and operation of formal and informal institutions. It also serves a less obvious function, a reassuring quality more closely related to issues linked with trust, social capital, and...

This Paper presents theory and evidence on the relationship between inequality and institutional quality. We exhibit a model in which the two dynamically reinforce each other and set to test this relationship with a broad array of institutional measures. We establish the double causality between...

Using objective institutional historical data for the case of Uruguay, we test the link between rent-seeking behavior in democracies using time-series and panel data approaches. We find three main results. First, democratic regimes are negatively linked with rent-seeking actions. Second, the...