Economic Growth and Social Capital

Recent interdisciplinary theoretical work has suggested that social capital, or the interpersonal trust of citizens, plays an important role in explaining both the efficiency of political institutions, and in the economic performance of contemporary societies. This paper examines the relationship between social capital and economic growth in a sample of thirty-four countries over the period 1970 to 1992, within the framework of a modified neo-classical model of economic growth. The findings suggest that social capital has an impact on growth which is at least as strong as that of human capital or education, which has been the focus of much of the recent work on endogenous growth theory. It appears to have about the same impact on growth as catch-up or the ability of poorer nations to adopt technological innovations pioneered by their richer counterparts.     

IMAGINING THE LAW: COMMON LAW AND THE FOUNDATIONS OF THE AMERICAN LEGAL SYSTEM

Now Doniger paced, using Kramer as an audience of one, "We are all ruled by the past, although no on understands it. No one recognizes the power of the past" he said, with a sweep of his hand.
"But if you think about it, the past has always been more important than the present. The present is like a coral island that sticks above the water, but is built upon millions of dead corals under the surface, that no one sees. In the same way, our everyday world is built upon millions and millions of events and decisions that occurred in the past. And what we add in the present is trivial.     

Peer effects in private and public schools across countries

Many argue that the composition of a school or classroom‐that is, the characteristics of the students themselves‐affect the educational attainment of an individual student. This influence of the students in a classroom is often referred to as a peer effect. There have been few systematic studies that empirically examine the peer effect in the educational process. In this research, we examine the peer effect with a unique data set that includes individual student achievement scores and comprehensive characteristics of the students' families, teachers, other school characteristics, and peers for five countries. The data allow an examination of peer effects in both private and public schools in all countries. Our analysis indicates that peer effects are a significant determinant of educational achievement; the effects of peers appear to be greater for low‐ability students than for high‐ability students. The finding is robust across countries but not robust across school type. © 2000 by the Association for Public Policy Analysis and Management.     

Party strategies and electoral competition in post-Communist countries: Evidence from Poland

Poland's major post-Communist party, the SLD, was an electorally successful legacy party during the 1990's. An analysis of Polish National Election Studies data and data from a separate study of new firm creation in Poland indicates their success was built on two important and related factors. One is the growth of new firms, which stimulated the growth of a centrist constituency who voted for parties supporting economic reforms. Second, the SLD adapted to this constituency by themselves becoming more economically liberal, as documented by Grzyma?a-Busse (2002). A conditional logit model of voter choice in the 1997 and 2001 elections relates votes to the distance between voters' preferences on economic policies and the positions of the competing parties. From this analysis we estimate that if the SLD had remained an ideological non-reformist party as did the KS?M in the Czech Republic and the CPRF in Russia it would have been a far weaker party as measured by vote and seat shares. Without the new firm creation, an ideological SLD cum KS?M could have been electorally successful as was the CPRF. The paper concludes by contrasting the the Polish, Czech and Russian post-Communist parties and extending the implications of the results to other developing and industrial economies faced with the need for structural change.