ECO 1305 Lecture 19: Institutions
Document Summary
Give the definition, explain, why are they important for economic performance and continue in some of many directions we have opened in this course. Informal: trust ethics authority attitude towards innovation, saving and profit. By increasing the quality of institutions transaction costs and corruption can be decreased. Institutions are a network of rules, regulations and enforcement systems. Institutions are a good way to determine the level of economic development of a country. For example institutions are important for innovation, in a way that they provide a place for human creativity, force businesses to innovate or go bankrupt and provide a well functioning economy.
