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Endogenous Institutions and Economic Outcomes
Social Science Research Network
This paper evaluates the relative importance of a "culture of cooperation," understood as the implicit reward from cooperating in prisoner's dilemma and investment types of interactions, and "inclusive political institutions," which enable voters to check the power delegated to their representatives. I divide Europe into 120km × 120km grids and exploit exogenous variation in both institutions driven by persistent Medieval history. To elaborate, I document strong first-stage relationshipsdoi:10.2139/ssrn.2295459 fatcat:eoe2xea56ngcphd7ln6qxtokku