p.11
Historical Analysis of Institutional Effects
How is population density in 1500 calculated?
By dividing the population by arable land area.
p.11
Democratic Participation Rights
What does the WPR index indicate?
The strength of political rights on a scale from 1 to 7.
p.11
Historical Analysis of Institutional Effects
What does the ESM variable represent?
The estimated mortality rate of European settlers.
p.12
Historical Analysis of Institutional Effects
What historical context is provided regarding political equality in the New World?
Areas of labor scarcity in the early colonial period saw more political equality, particularly in voting rights.
p.13
Historical Analysis of Institutional Effects
How can the disease environment of the 18th or 19th century affect current incomes?
It may be correlated with the disease environment in 2000, impacting current incomes directly and through institutions.
p.2
Coordination Failures in Early Development Stages
What types of coordination failures do early-stage economies face?
Various kinds of coordination failures that require different mechanisms to overcome.
p.1
Importance of Institutions in Economic Development
What alternative aspect of institutions does the paper suggest examining?
Democratic participation rights and institutions addressing coordination failures.
p.11
Historical Analysis of Institutional Effects
What does the LLCK dummy variable indicate?
Whether a country does not adjoin the sea.
p.5
Importance of Institutions in Economic Development
What two types of institutional variables are discussed in the text?
One relates to the rule of law and property rights, and the other relates to democratic political rights.
p.2
Property Rights and Economic Performance
What is the general impression regarding the rule of law and property rights?
If the rule of law protects property rights, the market will manage much of the rest.
p.9
Challenges in Cross-Country Regression Studies
What is the p-value for the F-statistic in the larger sample?
0.000, indicating statistical significance.
p.7
Democratic Participation Rights
What does the relationship between WPR and literacy suggest?
Democratic voice and participation are conducive to mass literacy campaigns.
p.3
Importance of Institutions in Economic Development
Why do institutions that adversely affect economic performance persist?
They often persist for long periods due to various factors, including the difficulty in quantifying their effects.
p.3
Quantifying Institutional Quality
What is a challenge economists face when studying institutions?
It is difficult to quantify the effects of various institutions.
p.1
Collective Action Problems and Distributive Conflicts
What issue does the paper speculate about regarding institutions in poor countries?
That dysfunctional institutions often persist due to distributive conflicts.
p.3
Coordination Failures in Early Development Stages
What is the focus of Section 3 in the paper?
The importance of social and political institutions in mitigating coordination failures.
p.9
Challenges in Cross-Country Regression Studies
What statistical method is used in the analysis presented in the table?
Ordinary Least Squares (OLS) regression.
p.1
Quantifying Institutional Quality
What does the paper propose regarding the quantification of property rights institutions?
To suggest an alternative instrumental variable for quantifying their effects.
p.12
Role of Political Rights in Human Development
How does literacy relate to political rights in the second stage of the analysis?
Literacy is significantly and negatively associated with the weakness of political rights.
p.3
Importance of Institutions in Economic Development
How are institutions interpreted in this paper?
As rules of structured social interaction.
p.3
Challenges in Cross-Country Regression Studies
What has been a recent trend in empirical literature regarding institutions?
A focus on cross-country regressions to determine the importance of geographical versus institutional factors.
p.7
Democratic Participation Rights
What institutional variable is significant when literacy level is the dependent variable?
Weakness of political rights (WPR).
p.11
Quantifying Institutional Quality
What is ELF an index of?
Ethnolinguistic fractionalization, measuring ethnic diversity.
p.7
Importance of Institutions in Economic Development
What is the relationship between state antiquity and the rule-of-law variable?
There is a highly significant positive association.
p.7
Importance of Institutions in Economic Development
What does a positive IV estimate of the institutional variable RULE indicate?
It suggests a positive impact on per capita GDP and life expectancy.
p.2
Importance of Institutions in Economic Development
What limitation does the focus on property rights impose on understanding development?
It limits understanding of the roles of other important institutions in the development process.
p.5
Quantifying Institutional Quality
What do the OLS regression results indicate about the institutional variables?
Both the rule of law and weak political rights are highly significant in explaining variations in per capita income across countries.
p.7
Historical Analysis of Institutional Effects
What happens to the significance of STATEHIST in the smaller sample of 69 countries?
The significance diminishes.
p.2
Collective Action Problems and Distributive Conflicts
What challenges arise in orchestrating institutional change?
Collective action problems and distributive conflicts.
p.11
Quantifying Institutional Quality
What does the RULE index assess?
The quality of the rule of law, including crime incidence and judiciary effectiveness.
p.7
Quantifying Institutional Quality
What technique is used to analyze the relationship between institutions and per capita income?
Instrumental variables (IV) regression.
p.2
Quantifying Institutional Quality
What has enriched institutional economics of development in the last two decades?
Historical and quantitative analysis of the effects of institutional quality on economic development.
p.9
Quantifying Institutional Quality
How does the R² value change from the larger sample to the smaller sample for HDI?
It decreases from 0.67 to 0.56.
p.12
Challenges in Cross-Country Regression Studies
What is the significance of the colonial settler mortality variable?
It is problematic and may not exclude the effects of other variables.
p.5
Property Rights and Economic Performance
Can democracy be necessary for the security of property rights?
No, durable authoritarian regimes can also provide a secure and predictable environment for private business.
p.2
Importance of Institutions in Economic Development
What is the purpose of the paper discussed in the text?
To explore the economic effects of various aspects of institutional quality beyond just property rights.
p.13
Challenges in Cross-Country Regression Studies
What issue does Albouy (2004) address regarding the AJR settler mortality measure?
He corrects flaws and shows that the revised data reveals a 'weak instrument' problem in the AJR analysis.
p.4
Collective Action Problems and Distributive Conflicts
What effect did the incongruence of post-colonial states have on African legitimacy?
It had a serious adverse effect on the legitimacy of the state.
p.1
Importance of Institutions in Economic Development
What is the main focus of the paper 'Institutions Matter, But Which Ones?' by Pranab Bardhan?
To explore the economic effects of various aspects of institutional quality beyond just individual property rights.
p.9
Quantifying Institutional Quality
What does the Rule of Law (RULE) positively correlate with in the larger sample?
Log GDP per capita, literacy, life expectancy at birth, and HDI.
p.12
Quantifying Institutional Quality
What variables are associated with weak political rights in the first-stage regression?
Ethno-linguistic fragmentation and population density in 1500.
p.5
Importance of Institutions in Economic Development
What does the study suggest about the relationship between democratic institutions and human development?
Some aspects of human development may be advanced by the progress of democratic institutions, alongside the establishment of property rights protection.
p.13
Importance of Institutions in Economic Development
Why might institutional quality today be considered endogenous with respect to income?
Good institutions are more likely to survive in more affluent countries.
p.13
Historical Analysis of Institutional Effects
What historical context does Olsson (2005) provide regarding early colonies in Latin America?
They were run by Europeans at a time when property rights institutions were not fully established even in their home countries.
p.5
Property Rights and Economic Performance
What do Przeworski and Limongi argue about democracy and property rights?
They argue that the idea that democracy protects property rights is a recent and far-fetched invention.
p.4
Historical Analysis of Institutional Effects
Which countries are mentioned as examples that escaped colonization?
China, Thailand, and Ethiopia.
p.12
Role of Political Rights in Human Development
What is the relationship between population density and political rights according to the text?
Countries with historically high population density tend to have weaker political rights.
p.5
Quantifying Institutional Quality
What is the advantage of using the state antiquity index over the settler mortality variable?
The sample size can be much larger, as information on the state antiquity index is available for more countries.
p.7
Collective Action Problems and Distributive Conflicts
How does ethno-linguistic fragmentation affect the rule of law?
It has a highly significant negative association with it.
p.9
Challenges in Cross-Country Regression Studies
What does a higher F-statistic indicate in the context of this regression analysis?
A significant relationship between the dependent and independent variables.
p.2
Coordination Failures in Early Development Stages
What are some mechanisms that can help overcome coordination failures?
The state, the market, and community organizations.
p.7
Collective Action Problems and Distributive Conflicts
What is the relationship between weak political rights (WPR) and rule of law (RULE)?
There is a significant negative correlation (-0.65).
p.4
Quantifying Institutional Quality
How does the state antiquity index differ among developing countries?
It is much lower for sub-Saharan Africa and Latin America than for Asia.
p.3
Role of Political Rights in Human Development
What additional institutional variable is used alongside property rights?
Democratic participation rights.
p.11
Quantifying Institutional Quality
What data sources are used for GDP per capita and HDI?
Penn World Tables and UNDP Human Development Report 2002.
p.5
Role of Political Rights in Human Development
Why is the proxy for democratic political rights significant?
It is a more significant determinant when literacy is the dependent variable and influences other elements of the composite human development index.
p.12
Challenges in Cross-Country Regression Studies
What are some general problems with cross-country regression studies mentioned in the text?
Dubious quality of data, omitted variable bias, and lack of insights into mechanisms through which institutions affect development.
p.2
Collective Action Problems and Distributive Conflicts
What may be at the root of many institutional failures in poor countries?
Distributive conflicts regarding political and economic power.
p.4
Quantifying Institutional Quality
How did AJR (2001) attempt to address the endogeneity problem of institutions and income?
By using mortality rates of colonial settlers as an instrument for institutional quality.
p.9
Role of Political Rights in Human Development
What is the effect of weak political rights (WPR) on GDP per capita in the larger sample?
It has a negative correlation.
p.3
Collective Action Problems and Distributive Conflicts
What does Section 4 analyze?
The role of unequal property regimes and resultant distributive conflicts.
p.12
Historical Analysis of Institutional Effects
What does the state antiquity variable suggest about democratic rights?
Countries with a long history of entrenched bureaucratic-military setups may not be hospitable to democratic rights.
p.5
Challenges in Cross-Country Regression Studies
What is a potential issue with the institutional variables discussed?
Both rule of law and weak political rights are endogenous and may be simultaneously affected.
p.4
Quantifying Institutional Quality
What did Bockstette, Chanda, and Putterman (2002) compute regarding state antiquity?
An index of state antiquity for a large number of countries.
p.4
Coordination Failures in Early Development Stages
What argument does Herbst (2000) make about land rights in pre-colonial Africa?
Land rights were not well-defined, leading to vague political entities that did not invest in bureaucracies.
p.13
Quantifying Institutional Quality
What flaw does Przeworski (2004) point out regarding the use of historical facts as instruments for current institutions?
Institutions change over time, making old historical facts potentially invalid as instruments for current institutions.
p.3
Historical Analysis of Institutional Effects
What is the significance of the literature by Acemoglu, Johnson, and Robinson?
It is widely cited and influential in understanding institutional impacts on economic performance.
p.10
Quantifying Institutional Quality
What is the dependent variable in the 2SLS regression for the larger sample?
Log GDP per capita, Literacy 2000, Life expectancy at birth 2000, HDI.
p.13
Historical Analysis of Institutional Effects
What approach may be necessary in the absence of detailed data across countries?
General qualitative comparative-historical analysis of the development process.
p.4
Historical Analysis of Institutional Effects
What factor did AJR (2001) suggest influenced the type of institutions established by European settlers?
Mortality rates among early European settlers, related to geography and disease patterns.
p.10
Quantifying Institutional Quality
What is the significance level of the coefficient for State antiquity (STATEHIST) in the larger sample?
Significant at the 0.35 level.
p.13
Challenges in Cross-Country Regression Studies
What is a common issue in recent cross-country regression studies regarding institutions?
They often focus on finding clever instruments rather than ensuring they provide adequate causal explanations.
p.13
Coordination Failures in Early Development Stages
What trade-off does North identify in the historical growth process?
The trade-off between economies-of-scale and specialization versus transaction costs.
p.4
Historical Analysis of Institutional Effects
What is a concern regarding the colonial settler mortality variable as an instrument?
It may not capture the major historical forces impacting the social and economic institutional structure of ex-colonies.
p.7
Quantifying Institutional Quality
What correlation exists between rule of law (RULE) and GDP per capita?
There is a strong positive correlation (0.82).
p.4
Challenges in Cross-Country Regression Studies
What issue did many African countries face regarding state structure during colonial times?
They were artificially regrouped by colonial rulers, leading to incongruence with pre-colonial political structures.
p.11
Historical Analysis of Institutional Effects
What does the STATEHIST index measure?
The antiquity of a state based on government duration, local governance, and territorial control.
