How to Measure Informal Institutions
23 Pages Posted: 17 Mar 2016
Date Written: March 15, 2016
There have been repeated claims that informal institutions play an important or even crucial role in economic development. Yet, measuring informal institutions entails serious challenges. This paper identifies the difficulties in measuring informal institutions, critically discusses some attempts hitherto taken and encourages the more intensive use of experiments to measure them.
Keywords: Institutions, Formal vs. Informal Institutions, external vs. internal institutions, culture vs. institutions, social capital, trust
JEL Classification: B41, C81/82, H11, K00, O17, O43, O57
Suggested Citation: Suggested Citation