The New Comparative Economics

Authors:
  • ASAndrei Shleifer
    Andrei Shleifer
  • SDSimeon Djankov
    Simeon Djankov
  • EGEdward L. Glaeser
    Edward L. Glaeser
  • RPRafael La Porta
    Rafael La Porta
  • FSFlorencio Lopez de Silanes
    Florencio Lopez de Silanes
Preprint
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  • 1 January 2003
Abstract
In recent years, the field of comparative economics refocused on the comparison of capitalist economies. The theme of the new research is that institutions exert a profound influence on economic development. We argue that, to understand capitalist institutions, one needs to understand the basic tradeoff between the costs of disorder and those of dictatorship. We apply this logic to study the structure of efficient institutions, the consequences of colonial transplantation, and the politics of institutional choice.