The Household Analysis of Comparative Development: An Empirical Replication

27 Pages Posted: 22 Jul 2012

See all articles by Alan Green

Alan Green

Stetson University; Lander University

Date Written: February 20, 2012

Abstract

Institutions are clearly exogenous to household decisions. Analysis of institutions can thus in theory proceed from the household level and avoid the problem of endogeneity. This assertion is tested through a replication of Acemoglu, Johnson and Robinson’s (2001) seminal paper. Replication at the household level is successful and with adequate controls IV and OLS household estimates are nearly identical, indicating no endogeneity problem. These results invite further analysis of institutions using household data. Estimates show a smaller effect of property rights institutions than found in the literature. Significant effects of geography, life expectancy and urban location are found.

Keywords: Institutions, Growth, Endogeneity

JEL Classification: O40, P50

Suggested Citation

Green, Alan, The Household Analysis of Comparative Development: An Empirical Replication (February 20, 2012). Available at SSRN: https://ssrn.com/abstract=2114548 or http://dx.doi.org/10.2139/ssrn.2114548

Alan Green (Contact Author)

Stetson University ( email )

Gulfport, FL 33707
United States

Lander University ( email )

Greenwood, SC 29649
United States

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