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THE DETERMINANTS OF INSTITUTIONAL QUALITY. MORE ON THE DEBATE
Author(s) -
Alonso José Antonio,
Garcimartín Carlos
Publication year - 2013
Publication title -
journal of international development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.533
H-Index - 66
eISSN - 1099-1328
pISSN - 0954-1748
DOI - 10.1002/jid.1710
Subject(s) - quality (philosophy) , revenue , institutional change , public economics , tax revenue , distribution (mathematics) , state (computer science) , relation (database) , new institutional economics , business , economics , microeconomics , political science , computer science , accounting , public administration , mathematics , data mining , philosophy , epistemology , mathematical analysis , algorithm
This paper provides new evidences about the determinants of institutional quality. Prior to implementing our empirical research, we discuss the criteria that should be used to judge the quality of institutions. Then, we identify the factors that, according to these criteria, determine institutional quality. The results obtained in the estimated model enable to draw some interesting conclusions. Firstly, development level determines institutional quality: the highest the former, the highest the latter. Secondly, income distribution conditions institutional quality. Thirdly, a sound tax system is positively associated with institutional quality improvement. Taxes provide the necessary revenue to generate quality institutions and create a narrower and more demanding relation between State and citizens. Finally, education improves institutional quality. Copyright © 2010 John Wiley & Sons, Ltd.