IDEAS home Printed from https://ideas.repec.org/a/oup/jleorg/v16y2000i1p129-54.html
   My bibliography  Save this article

When Should Market-Supporting Institutions Be Established?

Author

Listed:
  • Fleck, Robert K

Abstract

Market-supporting institutions play an essential role in successful market economies, yet much remains unanswered about when in the course of economic development those institutions should be established. This article develops a model that shows how private sector growth can depend on the time at which a country establishes institutions belonging to a specific category: those that have the potential not only to enhance efficiency, but to threaten private property rights by facilitating income redistribution (e.g., agencies to enforce regulations and tax laws). If a country has no difficulty committing to secure property rights, it is efficient to establish potentially efficiency-enhancing institutions as soon as possible. In the presence of commitment problems, however, eventually desirable institutions (even those essential for economic growth) can derail growth if established prematurely. Restricting voting rights may have positive or negative effects on growth, and there exist potential complementarities between democracy and efficiency-enhancing institutions. Copyright 2000 by Oxford University Press.

Suggested Citation

  • Fleck, Robert K, 2000. "When Should Market-Supporting Institutions Be Established?," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 16(1), pages 129-154, April.
  • Handle: RePEc:oup:jleorg:v:16:y:2000:i:1:p:129-54
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Robert K. Fleck & F. Andrew Hanssen, 2018. "Path dependence and transitions from tyranny to democracy: evidence from ancient Greece," Constitutional Political Economy, Springer, vol. 29(4), pages 371-388, December.
    2. Kilby, Christopher, 2005. "Aid and regulation," The Quarterly Review of Economics and Finance, Elsevier, vol. 45(2-3), pages 325-345, May.
    3. Fleck, Robert K. & Hanssen, F. Andrew, 2013. "When voice fails: Potential exit as a constraint on government quality," International Review of Law and Economics, Elsevier, vol. 35(C), pages 26-41.
    4. Kilby, Christopher, 2005. "World Bank lending and regulation," Economic Systems, Elsevier, vol. 29(4), pages 384-407, December.
    5. Fleck, Robert K. & Hanssen, F. Andrew, 2010. "Repeated adjustment of delegated powers and the history of eminent domain," International Review of Law and Economics, Elsevier, vol. 30(2), pages 99-112, June.
    6. Rama Krishna Reddy & Frances Fabian, 2020. "Information Asymmetry and Host Country Institutions in Cross-Border Acquisitions," Management International Review, Springer, vol. 60(6), pages 909-938, December.
    7. Robert K. Fleck & F. Andrew Hanssen, 2013. "How Tyranny Paved the Way to Democracy: The Democratic Transition in Ancient Greece," Journal of Law and Economics, University of Chicago Press, vol. 56(2), pages 389-416.
    8. Benedetto, Valerio & Smith, Andrew S.J. & Nash, Chris A., 2017. "Evaluating the roles and powers of rail regulatory bodies in Europe: A survey-based approach," Transport Policy, Elsevier, vol. 59(C), pages 116-123.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:jleorg:v:16:y:2000:i:1:p:129-54. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/jleo .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.