ECON 313 Lecture Notes - Lecture 26: Worldwide Governance Indicators, Asian Development Bank, Pilot Experiment
Document Summary
Compiles views of citizens, entrepreneurs, and experts in the public and private sectors. As seen from the graph, richer countries have a better rule of law: rule of law explains 50% of the variation in gdp, problem: variations in perception and time required to enforce a contract. Reverse causality: high gdp leads to better institutions. Omitted variable bias: the same factors that contribute to economic reform and development may also be responsible for improvements in judiciary (ex education: other evidence: judicial reforms. Asian development bank: million to pakistan in 2002. Teach judges case flow management techniques and monitor judges. Transition from unemployed or employed, to self-employed or employer. Entrepreneurship from 0. 1% to 0. 5: problem with analysis: non-random program placement. It is critical to understand why some countries have good or bad judiciaries. Good: accessible, speedy, unbiased, enforceable = inclusive (all) Bad: inaccessible, slow, biased, no enforcement = extractive (elite: legal origin. Decentralized dispute resolution by juries was efficient.