Chapter 16 Cross-country

Chapter 16 Cross-country - Institutions, policies, and...

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Institutions, policies, and cross-country differences in income and Growth Chapter 16: “Show me
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Cross-country differences in prosperity Rules of the game make a huge difference While other factors such as natural resources, climate, and location exert some influence Institutions/policy major source of cross- country differences in growth and income Encourage productive activity: Policies that protect property, fair judicial system, monetary stability, effective limits to transfer wealth through taxes & regulations, then individuals more likely seek the most productive and peaceful way to utilize assets and talents Encourage unproductive or destructive activity: When policy fails to protect property rights and used to favor some at the expense of others, then rent seeking, lobbying, bribes, manipulation , and other forms of plunder replace productive activity William Baumol (Chapter 16): Rules of the game make a huge difference
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Cross-country comparisons
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This note was uploaded on 04/01/2012 for the course ECON 101 taught by Professor Balaban during the Fall '07 term at UNC.

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Chapter 16 Cross-country - Institutions, policies, and...

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