Institutional reforms now and benefits tomorrow: How soon is tomorrow?

Pierre-Guillaume Méon, Khalid Sekkat and Laurent Weill

ULB Institutional Repository from ULB -- Universite Libre de Bruxelles

Abstract: This paper investigates the timing of the impact of changes in checks and balances on macroeconomic efficiency in a panel of countries. Using Battese and Coelli’s one-stage approach, we find that increasing checks and balances results in greater efficiency. Furthermore, the impact of institutional changes on efficiency is delayed, with a full effect showing after five to six years. This finding remains robust after distinguishing developed and developing countries, including country-fixed effects and using alternative functional forms of the production frontier and alternative measures of checks and balances. The relation is also robust to controlling for endogeneity.

Keywords: institutions; checks and balances; total factor productivity (search for similar items in EconPapers)
Date: 2009
Note: This is a translation of: Institutional reforms now and benefits tomorrow: How soon is tomorrow?
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Published in: Economics and politics (2009) v.21 n° 2,p.319-357

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Persistent link: https://EconPapers.repec.org/RePEc:ulb:ulbeco:2013/92374

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