Attention Economy


Tuesday, May 5, 2020

Importance of Good Quality Institutions

How Political Science Explains Countries’ Reactions to COVID-19
A comparison between Argentina, Brazil, and Mexico shows the decisive role of institutions.

History shows that countries that treat labor badly have slower growth.
Noah Smith notes:
“What is an institution? To most people it means well-established organizations, such as big businesses or the civil service. Economists use the word more generally to mean the rules of the game that govern human society. These can be official rules such as laws, electoral systems and property rights, or informal ones such as social customs, corruption or selective enforcement of laws. That’s an incredibly broad definition. But the key idea is that institutions of both the formal and informal kind last for a long time and govern human behavior in ways that can’t easily be explained by rational individual action”.