The New Comparative Economics
Simeon DJANKOV
, Edward Glaeser
, Rafael La Porta
, , Andrei SHLEIFER
2003, Journal of Comparative Economics, 31(4), pp.595-619
Abstract
In recent years, the field of comparative economics refocused on the comparison of capitalist economies. The theme of the new research is that institutions exert a profound influence on economic development. We argue that, to understand capitalist institutions, one needs to understand the basic tradeoff between the costs of disorder and those of dictatorship. We apply this logic to study the structure of efficient institutions, the consequences of colonial transplantation, and the politics of institutional choice.