Economic freedom, culture, and growth

Williamson, Claudia R.; Mathers, Rachel L.

doi:10.1007/s11127-010-9656-z

Cited by 178 publications

(109 citation statements)

References 68 publications

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“…Hence, societies where the acceptance of uneven distribution of power is embedded in the existing mindset, are significantly more likely to endure the set of extractive political and economic institutions since such a cultural setting is acceptable to political inequality, giving political elites greater incentives and opportunities to undertake rent-seeking and rent-extracting activities through less secure property rights, weak rule of law, protectionist trade and regulatory policies and political clientelism which is reflected by a lower index of economic freedom. Licht et al (2007) provide further empirical evidence on the importance of the link between culture and the set of social institutions whereas Williamson and Mathers (2011) discuss the complementarity between culture and economic freedom in particular. In this respect, the power distance index is a relevant instrument for the index of economic freedom.…”

Section: Institutional Endogeneity Of Economic Freedom and The Validimentioning

confidence: 99%

Institutional Origins of Subjective Well-Being: Estimating the Effects of Economic Freedom on National Happiness

Spruk

Kešeljević

2015

J Happiness Stud

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We exploit the cross-country differences in economic freedom to examine the link between the quality of institutions and subjective well-being. Using Veenhoven's happiness dataset, the evidence suggests countries with better economic institutions and higher level of economic freedom, captured by the security of property rights, open markets and more limited government, are significantly more likely to experience greater subjective well-being after controlling for structural confounders of national subjective well-being such as income, unemployment, inequality, social capital and life satisfaction. The effect of institutions on cross-national happiness is both significant and robust to different model specifications, estimation techniques and possible sources of endogeneity. Furthermore, our panel data analysis reveals that over time higher levels of economic freedom are associated with decreasing subjective well-being after controlling for state dependence and income.

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Section: Institutional Endogeneity Of Economic Freedom and The Validimentioning

confidence: 99%

Institutional Origins of Subjective Well-Being: Estimating the Effects of Economic Freedom on National Happiness

Spruk

Kešeljević

2015

J Happiness Stud

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“…This highlights the importance of taking into account the evolution of informal institutions as distinct from that of formal institutions. Mathers and Williamson (2011), Williamson and Mathers (2011) and Williamson and Kerekes (2011) also emphasize the distinction between formal and informal institutions. 13 Kane (1988) provides a thorough discussion of a similar dialectical process in the context of financial regulation.…”

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confidence: 99%

The nexus of economic and institutional evolution

Neyaptı

Arasil

2016

Economic Modelling

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a b s t r a c t a r t i c l e i n f oThe current state of the development economics literature ascribes an indisputable central role to institutions. This paper presents a formal model of institutional evolution that is based on the dynamic interactions between formal and informal institutions and economic development; the main features of the model is consistent with the fundamental theories that shed light to institutional evolution, namely the collective action and transaction cost theories, as well as dialectics. As informal institutional quality accumulates like technological know-how, while the level of formal institutional quality is chosen by the government to maximize welfare, subject to the economic and political costs. The solution of the model yields a punctuated trajectory of formal institutional evolution. Simulations reveal that the extent of diversity in informal institutional quality across a country delays formal institutional reforms. We also observe that, both the optimal quality of formal institutions and welfare are higher the more homogeneous is the country with respect to its informal institutions or the cultural attributes.

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“…Williamson i Mathers [Williamson, Mathers 2011] na przykładzie badań panelowych 74 państw stwierdzają, że: 1) kultura zwiększa skuteczność instytucji gospodarczych; 2) wolność gospodarcza (charakteryzująca tzw. dobre instytucje) przyczynia się do dobrobytu gospodarczego oraz 3) efektywność jest silnie uzależniona od wartości kulturowych.…”

Section: Konceptualizacja Terminu Spójność Systemów Instytucjonalnychunclassified

Cultural Symptoms of Inconsistencies in the Institutional Systems of Central and Eastern European Countries

Owczarczuk¹

2017

Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu

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Streszczenie: W artykule podjęto problem niespójności systemów instytucjonalnych postkomunistycznych krajów Europy Środkowej i Wschodniej (EŚiW) należących obecnie do Unii Europejskiej. Zakłada się, że istotnym elementem sprawności instytucji jest nie tylko ich jakość, ale również wewnętrzna spójność rozumiana jako dopasowanie formalnych elementów układu instytucjonalnego do ukształtowanych kulturowo instytucji nieformalnych. Wśród wielu aspektów niespójności instytucjonalnej te o podłożu i charakterze kulturowym jawią się jako niezwykle istotne. Niesprawne instytucje w krajach postkomunistycznych umożliwiają społeczeństwu utrwalanie postaw związanych z łamaniem podstawowych zasad funkcjonowania gospodarki rynkowej czy demokratyzacji życia społecznego. W związku z tym w artykule dokonano porównania krajów EŚiW pod kątem wybranych przejawów niespójności systemów instytucjonalnych, mających swe podłoże w kulturowo zakorzenionych postawach i wartościach społeczeństw tych państw. Tym samym -pośrednio -autorka wskazuje na istotną rolę instytucji nieformalnych w tworzeniu spójnych systemów instytucjonalnych gospodarek krajów EŚiW.Słowa kluczowe: instytucje nieformalne, transformacja, kraje postkomunistyczne, korupcja, zaufanie. Summary:The article addresses the problem of inconsistencies in the institutional systems of post-communist countries of Central and Eastern Europe (CEE) currently belonging to the European Union. It is assumed that an important element of institutional efficiency is not only their quality but also internal coherence, understood as matching the formal elements of the institutional system to culturally-shaped informal institutions. Among many aspects of institutional inconsistency, those of cultural origin and character appear to be extremely important. Inefficient institutions in post-communist countries enable the society to strengthen the attitudes of breaking the basic principles of functioning of a market economy or of democratizing social life. Therefore, the article compares CEE countries with regard to selected manifesta-

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Economic freedom, culture, and growth

Abstract: Culture, Informal institutions, Economic freedom, Economic growth, O43, P50, Z1,

Cited by 178 publications

References 68 publications

Institutional Origins of Subjective Well-Being: Estimating the Effects of Economic Freedom on National Happiness

Institutional Origins of Subjective Well-Being: Estimating the Effects of Economic Freedom on National Happiness

The nexus of economic and institutional evolution

Cultural Symptoms of Inconsistencies in the Institutional Systems of Central and Eastern European Countries

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