File2-page21 - ciency • Acemoglu Johnson Robinson(2001...

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Redistribution, Growth and Welfare A central concern in this literature is whether changes in institu- tional design can overcome the problems of elite and political cap- ture which have plagued formal credit. Examine whether changing the way that formal credit institutions disburse credit can affect outcomes. Burgess and Pande (2004) - social banking experiment in India - li- censing rules were used to force commercial banks to open over 30,000 branches in rural areas reductions rural poverty MicroFnance - innovation in the design of institution in order Fnance a wider range of project and increase outreach (Aniket, 2005, 2006) 3. Property Rights Increasing evidence that secure land rights, in particular, are an im- portant vehicle for the poor that may promote both equity and efF-
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Unformatted text preview: ciency • Acemoglu Johnson Robinson (2001) – countries with less risk of ex-propriation experience higher growth rates • Lin (1992), for example, shows that the move from collective to house-hold farming in China starting in 1978 led to large productivity in-creases in agriculture. 4. Regulation • Postwar model of economic development was built on a raft of regu-lation – benevolent governments intent on correcting market failures – central planning was in fashion • Djankov et al. (2002) collect data on the time and number of proce-dures an entrepreneur must complete to start a business in 85 coun-tries – Fnd that heavy regulation of entry is associated with less Development Economics, LSE Summer School 2007 18...
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