Beliefs and Consequences
In my latest essay, I write
Over the past 50 years, economists have become less materialistic. No, we have not become hippies, rejected consumerism, and discovered spirituality. As social scientists, however, we have noticed that a large share of wealth comes from factors other than basic labor and capital.
…If institutions are important, then this raises questions about how institutions get to be what they are. Are there strategies for achieving institutional reform, including ending corruption or strengthening property rights? Can institutions change suddenly, or do they evolve gradually? Why are we fortunate enough to have institutions that are conducive to growth, while other societies are stuck with dysfunctional institutions?