That together define the incentive structure of societies and economy•Two sets of institutions ◦Property right‣Economic dimension: property right•Political dimension: political right to depend property and income •Inequality‣Concentration of wealth hampers the accumulation of human capital. •Link to solos-type growth model◦Incorporate human capital ‣Innovation is the outcome of human and physical capita accumulation‣Good institution facilitate competition ‣
Subscribe to view the full document.
Comparing with Neo-classical◦Classicalism believes in free trade, globalization and integration into international factor‣Neo institutionalist also believe that international integration generate positive impact, but ‣the driving force should come from domestic factorsComparing with Marxist ◦Marxist:‣Econ development results from interaction between •Productive forces: people, land, labor, capital◦Structure = "relations of production and productive forces:" individuals with ◦different position to the ownership of land, capital and labor = institutions Super structure = legal apparatus and its enforcement mechanism: ideology, ◦religion and culture = formal institutions Based on informal, pre-existing relations of forces, social relations ‣Comparison:‣What North calls institutions = what Marx calls "social relations of production"•2.3.2 The Colonial HeritageNeo-institutionalism and the colonial heritage •Disagreement on the origins of LAC institutions ◦Landes and North: result of cultural and political transfer from colonizing power ‣Sokoloffand Robinson: ‣Initial inequality results from the unequal distribution of factor endowment (in Central •and South America), rather than the nature of colonizing power The this inequality persisted because these institutions tended to reproduce and •reinforce unequal distribution of wealth. Engerman & Sokoloff: endowment deterministic; initially conditions of factor endowment ‣was the fundamental causeAcemogly and Robinson: Labor was most important‣Bad institutions in areas with abundant labor and barrier to immigration (of Europeans, •due to disease)
As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.
Temple University Fox School of Business ‘17, Course Hero Intern
I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.
University of Pennsylvania ‘17, Course Hero Intern
The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.
Tulane University ‘16, Course Hero Intern
Ask Expert Tutors
You can ask 0 bonus questions
You can ask 0 questions (0 expire soon)
You can ask 0 questions
(will expire )