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The Rule of Law: Measurement and Deep Roots

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  • Gutmann, Jerg
  • Voigt, Stefan

Abstract

This paper does three things. First, based on a limited number of theoretically established dimensions, it proposes a new de facto indicator for the rule of law. It is the first such indicator to take the quality of legal norms explicitly into account. Second, using this indicator we shed new light on the relationship between the rule of law and the political system of a country. Third, because political systems hardly predetermine the rule of law level of a country, we investigate the roots of the rule of law. As theory on this specific question is scarce and the rule of law is closely associated with income levels, we draw on a topical literature that deals with the fundamental causes of economic development. Our findings suggest that specific determinants of long-run development operate via the rule of law, whereas others are not related to the rule of law at all.

Suggested Citation

  • Gutmann, Jerg & Voigt, Stefan, 2016. "The Rule of Law: Measurement and Deep Roots," ILE Working Paper Series 1, University of Hamburg, Institute of Law and Economics.
  • Handle: RePEc:zbw:ilewps:1
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    4. Vinicius V. Zanchi & Philipp Ehrl & Daniel T. G. N. Maciel, 2021. "Direct and Indirect Effects of Individualism and Institutions on Homicides," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(3), pages 1167-1195, February.
    5. Emilia Justyna Powell & Steven Christian McDowell & Robert O’Brien & Julia Oksasoglu, 2021. "Islam-based legal language and state governance: democracy, strength of the judiciary and human rights," Constitutional Political Economy, Springer, vol. 32(3), pages 376-412, September.
    6. Jerg Gutmann & Katarzyna Metelska-Szaniawska & Stefan Voigt, 2024. "The comparative constitutional compliance database," The Review of International Organizations, Springer, vol. 19(1), pages 95-115, January.
    7. Clemens Buchen, 2023. "Institutional reform paths," Economics and Politics, Wiley Blackwell, vol. 35(3), pages 1099-1121, November.
    8. Gutmann, Jerg & Voigt, Stefan, 2022. "Testing Todd: family types and development," Journal of Institutional Economics, Cambridge University Press, vol. 18(1), pages 101-118, February.
    9. Jerg Gutmann & Stefan Voigt, 2023. "Militant constitutionalism: a promising concept to make constitutional backsliding less likely?," Public Choice, Springer, vol. 195(3), pages 377-404, June.
    10. Gründler, Klaus & Krieger, Tommy, 2021. "Using Machine Learning for measuring democracy: A practitioners guide and a new updated dataset for 186 countries from 1919 to 2019," European Journal of Political Economy, Elsevier, vol. 70(C).
    11. Martin Gassebner & Jerg Gutmann & Stefan Voigt, 2016. "When to expect a coup d’état? An extreme bounds analysis of coup determinants," Public Choice, Springer, vol. 169(3), pages 293-313, December.
    12. Niclas Berggren & Jerg Gutmann, 2020. "Securing personal freedom through institutions: the role of electoral democracy and judicial independence," European Journal of Law and Economics, Springer, vol. 49(2), pages 165-186, April.
    13. Juan Cándido Gómez‐Gallego & María del Rocío Moreno‐Enguix & María Gómez‐Gallego, 2022. "The relation between the index of economic freedom and good governance with efficiency of the European Structural Funds," Papers in Regional Science, Wiley Blackwell, vol. 101(2), pages 327-349, April.
    14. Berggren, Niclas & Nilsson, Therese, 2016. "Tolerance in the United States: Does economic freedom transform racial, religious, political and sexual attitudes?," European Journal of Political Economy, Elsevier, vol. 45(S), pages 53-70.
    15. Berggren, Niclas & Nilsson, Therese, 2021. "Economic freedom and antisemitism," Journal of Institutional Economics, Cambridge University Press, vol. 17(2), pages 289-304, April.
    16. Absher, Samuel & Grier, Robin & Grier, Kevin, 2023. "The consequences of CIA-sponsored regime change in Latin America," European Journal of Political Economy, Elsevier, vol. 80(C).
    17. Chen, Victor Zitian & Cantwell, John, 2019. "Resistant roots of institutional diversity across societies: An evolutionary framework," SocArXiv 3gaqj, Center for Open Science.
    18. Gutmann, Jerg & Voigt, Stefan, 2020. "Traditional law in times of the nation state: why is it so prevalent?," Journal of Institutional Economics, Cambridge University Press, vol. 16(4), pages 445-461, August.
    19. Pál Czeglédi, 2023. "Why is the West unique in linking religiosity to market friendliness?," Economic Affairs, Wiley Blackwell, vol. 43(1), pages 73-88, February.
    20. Nisticò, Roberto, 2022. "Political institutions and economic development over more than a century," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 199-215.
    21. Judit Kapás, 2019. "The interaction of individual values and sticky formal institutions in economic development," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 16(1), pages 41-67, June.
    22. Mohammed N. Abu Alfoul & Ayman Hassan Bazhair & Ibrahim N. Khatatbeh & Adam G. Arian & Mahmoud N. Abu Al-Foul, 2024. "The Effect of Education on Economic Growth in Sub-Saharan African Countries: Do Institutions Matter?," Economies, MDPI, vol. 12(11), pages 1-18, November.
    23. Krieger, Tommy, 2022. "Measuring democracy," ZEW Discussion Papers 22-063, ZEW - Leibniz Centre for European Economic Research.

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    More about this item

    Keywords

    Rule of Law; Democracy; Dictatorship; Economic Development; Geography; Institutions;
    All these keywords.

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • K00 - Law and Economics - - General - - - General (including Data Sources and Description)
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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