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The Economic Role of Political Institutions
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This article studied the role of federalism in the development of markets in both England and the United States and found that federalism proved fundamental to the impressive economic rise of England in the 18th century and United States in the 19th and early 20th centuries.Abstract:
Thriving markets require not only an appropriately designed economic system, but a secure political foundation that limits the ability of the state to confiscate wealth. This requires a form of limited government, that is, political institutions that credibly commit the state to honor economic and political rights. This paper studies how limited government arose in the developed west, focusing on the critical role of federalism for protecting markets in both England and the United States. Federalism proved fundamental to the impressive economic rise of England in the 18th century and the United States in the 19th and early 20th centuries. The paper also shows that federalism underpins the spectacular economic growth in China over the past fifteen years.read more
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Federalism and the Soft Budget Constraint
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Accountability and Corruption: Political Institutions Matter
TL;DR: Lederman, Loayza, and Soares as mentioned in this paper used a cross-country panel to examine the determinants of corruption, paying particular attention to political institutions that increase political accountability.