ECON 313 Lecture Notes - Lecture 18: Montesquieu, Creative Destruction
24 Jun 2019
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Institutions (feb. 8th 2017: mortality rate of settlers. 80% mortality rate thus, what is needed: compare gdp of countries with more or less mortality rate of settlers (exogenous, could there be a direct link between mortality rate of settlers and. Gdp: maybe disease of settlers correlated with disease of. Europeans all over the world faced very high death rates. Look at data with countries that have the same number of people with european descent but with different. European mortality rates thus, if institutions matter, you"ll find a different gdp for these countries. But these locations, have difference in mortality rate of settlers: these places have very different gdps, indicating how important death of settlers was on gdp. Inclusive institutions: unbiased system of law that facilitates exchange, secure property rights, provision of public services that level the playing field, permit entry of new businesses, allow people to choose their careers. Different from democracy: apparent democracies can be subverted.
