Pub Date : 2024-01-08DOI: 10.1017/S1744137423000346
François Facchini, Sophie Massin, Kevin Brookes
Abstract This paper draws on macroeconomics, the economics of institutions and the economics of trust to explain private savings at the national level for 33 OECD (mostly European) countries from 2002 to 2012. More specifically, it raises two questions: (i) is it the quality of institutions or trust in institutions that drives private savings? (ii) if trust matters, what is the appropriate institutional level at which it operates? To answer these questions, we add to the usual explanatory variables of private savings three measures of institutional quality and six measures of institutional trust, distributed between the following institutional levels, presented in assumed hierarchical order: political, legal, financial and social. We find that trust in political institutions is the most significant driver of private savings. This contributes to the literature underlining the importance of subjectivity in social and economic phenomena and suggests, for private bank savings in countries having highly regulated banking systems, the existence of a hierarchy of trust in which trust in the highest-ranking institutions (political – and to a lesser extent legal – institutions) acts as a substitute for trust in every lower-ranking institution (financial institutions and social trust).
{"title":"The relationship between institutional quality, trust and private savings","authors":"François Facchini, Sophie Massin, Kevin Brookes","doi":"10.1017/S1744137423000346","DOIUrl":"https://doi.org/10.1017/S1744137423000346","url":null,"abstract":"Abstract This paper draws on macroeconomics, the economics of institutions and the economics of trust to explain private savings at the national level for 33 OECD (mostly European) countries from 2002 to 2012. More specifically, it raises two questions: (i) is it the quality of institutions or trust in institutions that drives private savings? (ii) if trust matters, what is the appropriate institutional level at which it operates? To answer these questions, we add to the usual explanatory variables of private savings three measures of institutional quality and six measures of institutional trust, distributed between the following institutional levels, presented in assumed hierarchical order: political, legal, financial and social. We find that trust in political institutions is the most significant driver of private savings. This contributes to the literature underlining the importance of subjectivity in social and economic phenomena and suggests, for private bank savings in countries having highly regulated banking systems, the existence of a hierarchy of trust in which trust in the highest-ranking institutions (political – and to a lesser extent legal – institutions) acts as a substitute for trust in every lower-ranking institution (financial institutions and social trust).","PeriodicalId":47221,"journal":{"name":"Journal of Institutional Economics","volume":"24 8","pages":""},"PeriodicalIF":2.2,"publicationDate":"2024-01-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139380053","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-12-19DOI: 10.1017/s1744137423000358
Natalia Izelli Doré, Aurora A. C. Teixeira
Abstract This paper assesses Brazil's real convergence (1822–2019) through unit root tests and Markov Regime-Switching (MS) models in three different scenarios: towards (i) other six Latin American countries (LA6); (ii) Portugal; and (iii) the technological frontier country, the US. The extended unit root test results favour Brazil's very long-run real convergence towards LA6 and Portugal, but not the US. The estimated MS models, involving two different regimes, real convergence and real non-convergence/divergence, capture institutional quality's positive effect in promoting Brazil's real convergence.
本文通过单位根检验和马尔可夫时间转换（MS）模型评估了巴西在三种不同情况下的实际趋同（1822-2019 年）：(i) 向其他六个拉美国家（LA6）趋同；(ii) 向葡萄牙趋同；(iii) 向技术前沿国家美国趋同。扩展单位根检验结果表明，巴西与拉丁美洲六国和葡萄牙有非常长期的实际趋同，但与美国没有趋同。估计的 MS 模型涉及两种不同的制度，即实际趋同和实际不趋同/趋异，反映了制度质量在促进巴西实际趋同方面的积极作用。
{"title":"Do human capital and institutional quality contribute to Brazil's long term real convergence/divergence process? A Markov regime-switching autoregressive approach","authors":"Natalia Izelli Doré, Aurora A. C. Teixeira","doi":"10.1017/s1744137423000358","DOIUrl":"https://doi.org/10.1017/s1744137423000358","url":null,"abstract":"Abstract This paper assesses Brazil's real convergence (1822–2019) through unit root tests and Markov Regime-Switching (MS) models in three different scenarios: towards (i) other six Latin American countries (LA6); (ii) Portugal; and (iii) the technological frontier country, the US. The extended unit root test results favour Brazil's very long-run real convergence towards LA6 and Portugal, but not the US. The estimated MS models, involving two different regimes, real convergence and real non-convergence/divergence, capture institutional quality's positive effect in promoting Brazil's real convergence.","PeriodicalId":47221,"journal":{"name":"Journal of Institutional Economics","volume":"3 1","pages":""},"PeriodicalIF":2.2,"publicationDate":"2023-12-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138818742","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-12-15DOI: 10.1017/s1744137423000322
Maty Konte, Gideon Ndubuisi
We explore the heterogeneous effect of migrant remittances on citizens' support for taxation using a sample comprising 45,000 individuals from the Afrobarometer survey round 7 [2016–2018] across 34 African countries. To correct for unobserved heterogeneity, we endogenously identify latent classes/subtypes of individuals that share similar patterns on how their support for taxation is affected by their unobserved and observed characteristics, including remittance dependency. We apply the finite multilevel mixture of regressions approach, a supervised machine learning method to detect hidden classes in the data without imposing a priori assumptions on class membership. Our data are best generated by an econometric model with two classes/subtypes of individuals. In class 1 where more than two-thirds of the citizens belong, we do not find any significant evidence that remittance dependence affects support for taxation. However, in class 2 where the remaining one-third of the citizens belong, we find a significant negative effect of remittance dependence on support for taxation. Furthermore, we find that citizens who have a positive appraisal of the quality of the public service delivery have a lower probability of belonging to the class in which depending on remittance reduces support for taxation. The findings emphasize the need for efficient public services provisioning to counteract the adverse effect of remittances on tax morale.
{"title":"Remittance dependence, support for taxation and quality of public services in Africa","authors":"Maty Konte, Gideon Ndubuisi","doi":"10.1017/s1744137423000322","DOIUrl":"https://doi.org/10.1017/s1744137423000322","url":null,"abstract":"We explore the heterogeneous effect of migrant remittances on citizens' support for taxation using a sample comprising 45,000 individuals from the Afrobarometer survey round 7 [2016–2018] across 34 African countries. To correct for unobserved heterogeneity, we endogenously identify latent classes/subtypes of individuals that share similar patterns on how their support for taxation is affected by their unobserved and observed characteristics, including remittance dependency. We apply the finite multilevel mixture of regressions approach, a supervised machine learning method to detect hidden classes in the data without imposing <jats:italic>a priori</jats:italic> assumptions on class membership. Our data are best generated by an econometric model with two classes/subtypes of individuals. In class 1 where more than two-thirds of the citizens belong, we do not find any significant evidence that remittance dependence affects support for taxation. However, in class 2 where the remaining one-third of the citizens belong, we find a significant negative effect of remittance dependence on support for taxation. Furthermore, we find that citizens who have a positive appraisal of the quality of the public service delivery have a lower probability of belonging to the class in which depending on remittance reduces support for taxation. The findings emphasize the need for efficient public services provisioning to counteract the adverse effect of remittances on tax morale.","PeriodicalId":47221,"journal":{"name":"Journal of Institutional Economics","volume":"20 1","pages":""},"PeriodicalIF":2.2,"publicationDate":"2023-12-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138691414","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-12-11DOI: 10.1017/s1744137423000292
Rishika Nayyar, John M. Luiz
Institutions matter as regards foreign location investment decisions, but how they matter and in what ways, is still unsettled. We differentiate between absolute and relative institutional effects on both location choice and on the size of the FDI and do so by examining India's outward FDI flows between 2008 and 2020. We find that absolute and relative institutional measures have different effects, and these are noticeable at different stages. We show that the quality of institutions affects location choice, but once they have made that decision then the scale of the investment is impacted by institutional threshold effects and institutional distance, and we explain why this could be the case. We provide further nuance to studies on the asymmetrical effects of institutions on outward FDI. We provide empirical evidence that the effects of absolute institutions matter more where host countries lie at the lower end of the institutional profile distribution. Likewise with institutional distance—it might not be the direction of the difference that matters so much as where the host country is located along the institutional profile distribution. This has substantial consequences from both a managerial and a policy perspective.
{"title":"Location choice and Indian outward foreign direct investment: institutional thresholds and differentiating between institutional quality and institutional distance","authors":"Rishika Nayyar, John M. Luiz","doi":"10.1017/s1744137423000292","DOIUrl":"https://doi.org/10.1017/s1744137423000292","url":null,"abstract":"Institutions matter as regards foreign location investment decisions, but how they matter and in what ways, is still unsettled. We differentiate between absolute and relative institutional effects on both location choice and on the size of the FDI and do so by examining India's outward FDI flows between 2008 and 2020. We find that absolute and relative institutional measures have different effects, and these are noticeable at different stages. We show that the quality of institutions affects location choice, but once they have made that decision then the scale of the investment is impacted by institutional threshold effects and institutional distance, and we explain why this could be the case. We provide further nuance to studies on the asymmetrical effects of institutions on outward FDI. We provide empirical evidence that the effects of absolute institutions matter more where host countries lie at the lower end of the institutional profile distribution. Likewise with institutional distance—it might not be the direction of the difference that matters so much as where the host country is located along the institutional profile distribution. This has substantial consequences from both a managerial and a policy perspective.","PeriodicalId":47221,"journal":{"name":"Journal of Institutional Economics","volume":"29 1","pages":""},"PeriodicalIF":2.2,"publicationDate":"2023-12-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138572586","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-12-07DOI: 10.1017/s1744137423000310
Stefan Voigt
It is now abundantly clear that social norms channel behaviour and impact economic development. This insight leads to the question: How do social norms evolve? This survey examines research that relies on geography to explain the development of social norms. It turns out that many social norms are either directly or indirectly determined by geography broadly conceived and can, hence, be considered largely time invariant. Given that successful economic development presupposes the congruence between formal institutions and social norms, this insight is highly relevant for all policy interventions designed to foster economic development. In a companion paper, the role of religion and family organization as potential mediators between geography and social norms assumes centre stage.
{"title":"Determinants of social norms I – the role of geography","authors":"Stefan Voigt","doi":"10.1017/s1744137423000310","DOIUrl":"https://doi.org/10.1017/s1744137423000310","url":null,"abstract":"It is now abundantly clear that social norms channel behaviour and impact economic development. This insight leads to the question: How do social norms evolve? This survey examines research that relies on geography to explain the development of social norms. It turns out that many social norms are either directly or indirectly determined by geography broadly conceived and can, hence, be considered largely time invariant. Given that successful economic development presupposes the congruence between formal institutions and social norms, this insight is highly relevant for all policy interventions designed to foster economic development. In a companion paper, the role of religion and family organization as potential mediators between geography and social norms assumes centre stage.","PeriodicalId":47221,"journal":{"name":"Journal of Institutional Economics","volume":"1 1","pages":""},"PeriodicalIF":2.2,"publicationDate":"2023-12-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138561532","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-11-09DOI: 10.1017/s1744137423000309
An abstract is not available for this content so a preview has been provided. Please use the Get access link above for information on how to access this content.
此内容的摘要不可用，因此提供了预览。有关如何访问此内容的信息，请使用上面的获取访问链接。
{"title":"List of Referees","authors":"","doi":"10.1017/s1744137423000309","DOIUrl":"https://doi.org/10.1017/s1744137423000309","url":null,"abstract":"An abstract is not available for this content so a preview has been provided. Please use the Get access link above for information on how to access this content.","PeriodicalId":47221,"journal":{"name":"Journal of Institutional Economics","volume":" 6","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-11-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135242540","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-11-03DOI: 10.1017/s1744137423000280
Vincent J. Miozzi, Benjamin Powell
Abstract This note updates a measure of lockdown regulatory freedom for 2021 and then uses it to adjust countries' 2021 economic freedom scores to account for pandemic regulations that impact economic freedom but otherwise would go unmeasured. We directly follow Miozzi and Powell's (2023a, Journal of Institutional Economics 19 (2), 229–250) methods to measure lockdown regulations and adjust 2020 economic freedom scores. Thus, when paired with those findings we provide a data set that consistently measures coronavirus disease 2019 regulations and economic freedom over the course of the pandemic that can be used in other research. We find that lockdown regulatory freedom increased as countries scaled back pandemic regulations, while other areas of economic freedom continued declining. We also find that adjusting for lockdown regulatory freedom continues to significantly impact countries' relative ranking in economic freedom.
本文更新了2021年的封锁监管自由度指标，然后用它来调整各国2021年的经济自由度得分，以考虑影响经济自由的流行病法规，否则这些法规将无法衡量。我们直接遵循Miozzi和Powell (2023a, Journal of Institutional Economics 19(2)， 229-250)的方法来衡量封锁法规并调整2020年经济自由得分。因此，当与这些发现相结合时，我们提供了一个数据集，该数据集可以在大流行期间持续衡量2019年冠状病毒病的法规和经济自由，可用于其他研究。我们发现，随着各国缩减流行病监管，封锁监管自由度有所增加，而其他领域的经济自由度继续下降。我们还发现，对封锁监管自由度进行调整继续显著影响各国在经济自由度方面的相对排名。
{"title":"Global economic freedom during the second year of the pandemic","authors":"Vincent J. Miozzi, Benjamin Powell","doi":"10.1017/s1744137423000280","DOIUrl":"https://doi.org/10.1017/s1744137423000280","url":null,"abstract":"Abstract This note updates a measure of lockdown regulatory freedom for 2021 and then uses it to adjust countries' 2021 economic freedom scores to account for pandemic regulations that impact economic freedom but otherwise would go unmeasured. We directly follow Miozzi and Powell's (2023a, Journal of Institutional Economics 19 (2), 229–250) methods to measure lockdown regulations and adjust 2020 economic freedom scores. Thus, when paired with those findings we provide a data set that consistently measures coronavirus disease 2019 regulations and economic freedom over the course of the pandemic that can be used in other research. We find that lockdown regulatory freedom increased as countries scaled back pandemic regulations, while other areas of economic freedom continued declining. We also find that adjusting for lockdown regulatory freedom continues to significantly impact countries' relative ranking in economic freedom.","PeriodicalId":47221,"journal":{"name":"Journal of Institutional Economics","volume":"31 7","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-11-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135820216","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-14DOI: 10.1017/s1744137423000279
Abishek Choutagunta, Jerg Gutmann, Stefan Voigt
Abstract It is often argued that governments take advantage of extreme events to expand their power to the detriment of the political opposition and citizens at large. Violations of constitutional constraints are a clear indication of such opportunistic behaviour. We study whether natural disasters, conflicts and other extreme events systematically diminish governments' compliance with constitutional constraints. Our results indicate that governments are most likely to overstep their competences or disregard their responsibilities during civil conflicts, at the onset of international sanctions or following successful coups d’état. Interestingly, Cold War interventions by the United States that installed or supported a political leader led to a decrease in constitutional compliance in the target country, whereas Soviet interventions had no such effect. In contrast, banking crises and natural disasters, which threaten societies at large, but not necessarily the political elite, do not cause a significant decline in constitutional compliance.
{"title":"Shocking resilience? Effects of extreme events on constitutional compliance","authors":"Abishek Choutagunta, Jerg Gutmann, Stefan Voigt","doi":"10.1017/s1744137423000279","DOIUrl":"https://doi.org/10.1017/s1744137423000279","url":null,"abstract":"Abstract It is often argued that governments take advantage of extreme events to expand their power to the detriment of the political opposition and citizens at large. Violations of constitutional constraints are a clear indication of such opportunistic behaviour. We study whether natural disasters, conflicts and other extreme events systematically diminish governments' compliance with constitutional constraints. Our results indicate that governments are most likely to overstep their competences or disregard their responsibilities during civil conflicts, at the onset of international sanctions or following successful coups d’état. Interestingly, Cold War interventions by the United States that installed or supported a political leader led to a decrease in constitutional compliance in the target country, whereas Soviet interventions had no such effect. In contrast, banking crises and natural disasters, which threaten societies at large, but not necessarily the political elite, do not cause a significant decline in constitutional compliance.","PeriodicalId":47221,"journal":{"name":"Journal of Institutional Economics","volume":"27 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134912885","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-07DOI: 10.1017/s1744137423000255
Paul Lewis, Matias Petersen
This paper explores Elinor Ostrom's account of practical reason through the conceptual lens provided by a typology of dimensions of rational conduct advanced by Amartya Sen. On Sen's view, self-interested behaviour has three independent, and separable, features: self-centred welfare, self-welfare goal and self-goal choice. We suggest that Ostrom is committed to a version of rational choice theory that retains the assumptions of self-welfare goal and self-goal choice but, by acknowledging that people's welfare is affected by factors beyond their material consumption, departs from the assumption of self-welfare goal. We argue that this departure is not necessarily driven by an acknowledgement, along Senian lines, that people may have reasons for action other than the single-minded pursuit of their own goals, but rather by Ostrom's belief that the decision problem people face is so complex that maximising behaviour is rendered impossible. We illustrate this argument by analysing how Elinor Ostrom's position differs not only from Sen's but also from that of her husband and long-time collaborator Vincent Ostrom, who in his analysis of the covenantal aspects of rule-making seems to depart from the assumptions of instrumental rationality and preference-satisfaction.
{"title":"Elinor Ostrom on choice, collective action and rationality: a Senian analysis","authors":"Paul Lewis, Matias Petersen","doi":"10.1017/s1744137423000255","DOIUrl":"https://doi.org/10.1017/s1744137423000255","url":null,"abstract":"\u0000 This paper explores Elinor Ostrom's account of practical reason through the conceptual lens provided by a typology of dimensions of rational conduct advanced by Amartya Sen. On Sen's view, self-interested behaviour has three independent, and separable, features: self-centred welfare, self-welfare goal and self-goal choice. We suggest that Ostrom is committed to a version of rational choice theory that retains the assumptions of self-welfare goal and self-goal choice but, by acknowledging that people's welfare is affected by factors beyond their material consumption, departs from the assumption of self-welfare goal. We argue that this departure is not necessarily driven by an acknowledgement, along Senian lines, that people may have reasons for action other than the single-minded pursuit of their own goals, but rather by Ostrom's belief that the decision problem people face is so complex that maximising behaviour is rendered impossible. We illustrate this argument by analysing how Elinor Ostrom's position differs not only from Sen's but also from that of her husband and long-time collaborator Vincent Ostrom, who in his analysis of the covenantal aspects of rule-making seems to depart from the assumptions of instrumental rationality and preference-satisfaction.","PeriodicalId":47221,"journal":{"name":"Journal of Institutional Economics","volume":" ","pages":""},"PeriodicalIF":2.2,"publicationDate":"2023-09-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47046528","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-07DOI: 10.1017/s1744137423000267
Veeshan Rayamajhee, Raymond J March, Corbin C. T. Clark
Institutions matter for postdisaster recovery. Conversely, natural disasters can also alter a society's institutions. Using the synthetic control method, this study examines the effects that Hurricane Katrina (2005) had on the formal and informal institutions in Louisiana. As measures of formal institutions, we employ two economic freedom scores corresponding to government employment (GE) (as a share of total employment at the state-level) and property tax (PT). These measures serve as proxies for the level of governmental interference into the economy and the protection of private property rights respectively. To assess the impact on informal institutions, we use state-level social capital data. We find that Hurricane Katrina had lasting impacts on Louisiana's formal institutions. In the post-Katrina period, we find that actual Louisiana had persistently higher economic freedom scores for both GE and PT than the synthetic Louisiana that did not experience the hurricane. These findings imply that the hurricane led to a reduction in both PTs and GE, which indicates a decrease in the relative size of the public sector as a share of the state's economy. On the other hand, we find no impact on our chosen measure of informal institution.
{"title":"Shock me like a Hurricane: how Hurricane Katrina changed Louisiana's formal and informal institutions","authors":"Veeshan Rayamajhee, Raymond J March, Corbin C. T. Clark","doi":"10.1017/s1744137423000267","DOIUrl":"https://doi.org/10.1017/s1744137423000267","url":null,"abstract":"\u0000 Institutions matter for postdisaster recovery. Conversely, natural disasters can also alter a society's institutions. Using the synthetic control method, this study examines the effects that Hurricane Katrina (2005) had on the formal and informal institutions in Louisiana. As measures of formal institutions, we employ two economic freedom scores corresponding to government employment (GE) (as a share of total employment at the state-level) and property tax (PT). These measures serve as proxies for the level of governmental interference into the economy and the protection of private property rights respectively. To assess the impact on informal institutions, we use state-level social capital data. We find that Hurricane Katrina had lasting impacts on Louisiana's formal institutions. In the post-Katrina period, we find that actual Louisiana had persistently higher economic freedom scores for both GE and PT than the synthetic Louisiana that did not experience the hurricane. These findings imply that the hurricane led to a reduction in both PTs and GE, which indicates a decrease in the relative size of the public sector as a share of the state's economy. On the other hand, we find no impact on our chosen measure of informal institution.","PeriodicalId":47221,"journal":{"name":"Journal of Institutional Economics","volume":" ","pages":""},"PeriodicalIF":2.2,"publicationDate":"2023-09-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43451394","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：