Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/45461 
Authors: 
Year of Publication: 
2010
Series/Report no.: 
Working Paper No. 1012
Publisher: 
TÜSİAD-Koç University Economic Research Forum, Istanbul
Abstract: 
This paper proposes an original formal framework to analyze institutional evolution. Institutions have formal (F) and informal (N) aspects that may evolve at different paces, although eventually converging towards each other through an dynamic interactive process. N evolves with capital accumulation, as in learning by doing, and F is optimally chosen by the government who maximizes output given the social and political costs of changing F. As transaction-cost-reducing mechanisms, F and N together define the production technology and affect the income level. As consistent with the evidence, calibrations of the model reveal that optimum F exhibits a punctuated equilibra.
Subjects: 
institutional evolution
punctuated equilibria
growth
JEL: 
E02
O17
O43
Document Type: 
Working Paper

Files in This Item:
File
Size
344.19 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.