Economic Security, Well Functioning Courts and a Good Government

mamoon, dawood (2011): Economic Security, Well Functioning Courts and a Good Government.

Abstract

The paper defines economic security as a country’s ability to re distribute incomes through a strong governance structure by practicing rule of law, eliminating corruption and a government that acts as a facilitator by formulating effective fiscal and monetary policy and regulation. The results suggest that courts that implement national laws effectively and punish corruption and a government that has balance budgets and investment friendly monetary policy ensures economic security by means of welfare friendly outcomes that favor the incomes of the poor and middle class. There is also evidence that redistribution takes place from rich to the poor. As a result income and wage inequalities fall down.

• Item Type: MPRA Paper
• Language: English
• Keywords: Governance, Redistribution, Inequality
• Subjects: E - Macroeconomics and Monetary Economics > E0 - General > E02 - Institutions and the Macroeconomy; D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

References

Acemoglu, D. (2003) ‘The Form of Property Rights: Oligarchic vs. Democratic Societies,’ NBER Working Papers 10037, National Bureau of Economic Research, Inc.

Acemoglu, D., S. Johnson and J. A. Robinson (2001) ‘The Colonial Origins of Comparative Development: An Empirical Investigation’, American Economic Review 91(5): 1369-1401, http://emlab.berkeley.edu/users/chad/e236c_f04/ajr2001.pdf

Ahnen, R. E. (2007) ‘The Politci of Police Violence in Democratic Brazil,’ Latin American Politics and Society 49 (1): 141-64

Atkinson, A.B. and A. Brandolini (2001) ‘Promise and Pitfalls in the Use of “Secondary” Data-Sets: Income Inequality in OECD Countries as a Case Study’, Journal of Economic Literature, 39 (3): 771-799

Barreto, R.A. (1996) ‘Endogenous Corruption, Inequality and Growth: Econometric Evidence’, Mimeo, Boulder, CO: University of Colorado (September).

Baum, C. F., M. E. Schaffer and S. Stillman (2003) ‘Instrumental Variables and GMM: Estimation and Testing’ The Stata Journal , 3(1) pp.1-31

Blair, H. (2000) ‘Participation and Accountability at the Periphery: Democratic Local Governance in Six Countries,’ World Development 28 (1), pp. 21-39

Brinks, D. M. (2008) ‘Inequality, Institutions, and the rule of law: The social and Institutional Bases of Rights’, Working Paper N0. 351 http://kellogg.nd.edu/publications/workingpapers/WPS/351.pdf

Chong, A. and M. Gradstein (2004) ‘Inequality and Institutions’, Inter-American Development Bank, Working Paper No. 506 (April).

Cragg, J. G. and S. G. Donald (1993) ‘Testing Indentifiability and Specif¬ication in Instrumental Variable Models,’ Econometric Theory, (9) pp. 222-240

Edwards, S. (1998 ) ‘Openness, Productivity and Growth: What Do We Real¬ly Know?’, Economic Journal 108: 383-98.

Frankel, J. and D. Romer (1999) ‘Does Trade Cause Growth?’, American Economic Review 89(3): 379-99.

Galbraith, J.K. and H. Kum (2002) ‘Inequality and Economic Growth: Data Comparisons and Econometric Tests’, UTIP Working Paper No. 21, The University of Texas at Austin.

Glaeser, E.L., R. La Porta,, F. Lopez-de-Silanes and A. Shleifer (2004) ‘Do Institutions cause Growth’, Journal of Economic Growth 9(3): 271-303.

Gupta, S., H. Davoodi and R. Alonso-Terme (1998) ‘Does Corruption Affect Income Inequality and Poverty?’, IMF Working Paper, WP/98/76 (May).

Hall, R.E, and C. Jones (1999) ‘Why do Some Countries Produce So Much More Output per Worker than Others?’, Quarterly Journal of Economics 114: 83-116.

Hellman, J. and D. Kaufmann (2002) The Inequality of Influence, Washington DC: World Bank.

Kawai, M. and S. Takagi (2008) ‘ A Survey of Literature on Managing Capital Inflows’ ADB Institute Discussion Paper No. 10 http://www.adbi.org/files/dp100.managing.capital.flows.lit.survey.pdf

Kaufman, D., A. Kraay and Z. Lobaton (2003) ‘Governance Matters III: Governance Indicators for 1996-2002’, Policy Research Working Paper 2772, Washington DC: World Bank, http://www.worldbank.org/wbi/governance/pdf/govmatters3.pdf

Khalifa, S. (2005) ‘Monetary Policy, the Skill Premium, and Unemployment Across Skills’, Working Paper (December), http://www.econ.jhu.edu/jobmarket/2005/khalifa/Chapter2Khalifa.pdf

Milanovic, B. (2006) "Global Income Inequality," World Economics, World Economics, NTC Economic & Financial Publishing, PO Box 69, Henley-on-Thames, Oxfordshire, United Kingdom, RG9 1GB, vol. 7(1), pages 131-157

O’Donnell, G. A. (2001) ‘ Democracy, Law and Comparative Politics,’ Studies in Comparative International Development. 36 (1), pp.7-36

Pritchett, L. ‘Measuring outward orientation in LDCs: Can it be done?,’ Journal of Development Economics, Elsevier, vol. 49, No. 2, 1996, pp. 307-335

Rodrik, D. (1999) ‘Institutions for High Quality Growth: What they are and How to Acquire them’, IMF Conference on Second Generation Reforms (October).

Roy, R. and J. Weeks (2003) ‘Making Fiscal Policy Work for the Poor’, Mimeo, UNDP.

Sachs, J.D. and A. Warner (1995) ‘Economic Reform and Process of Global Integration’, Brookings Papers on Economic Activity 1: 1-118.

Segura-Cayuela, R. (2005) ‘Inefficient Policies, Inefficient Institutions and Trade’, Job Market Paper, Cambridge, MA: MIT (November).

Smeeding, M.T. (2002) ‘Globalisation, Inequality and the Rich Countries of the G-20: Evidence From the Luxembourg Income Study (LIS)’, Social Policy Research Centre (SPRC) Discussion Paper No. 122 (December).

Staiger, D and H. J. Stock, (1997) "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586

Stiglitz, J. (2006) ‘Making Globalisation Work’, WW Norton, September, 2006.

Stiglitz, J. (2001) ‘Autobiography’, Nobel Prize

Tanzi, V. (1995) ‘Corruption: Arms Length Relationships and Markets’, in Gianluca Fiorentini and Sam Peltzman (eds), The Economics of Organised Crime, Cambridge, UK: Cambridge University Press.

Wade, R. (2004) ‘Is globalization reducing poverty and inequality?' World Development 32 (4) pp. 567-589.

Williamson, O. (1999) ‘The New Institutional Economics: Taking Stock, Looking Ahead’, Journal of Economic Literature, 38, pp. 595-613

UNDP (1997) Human Development Report.

Yudaeva, K. (2003) ‘Globalisation and Inequality in CIS Countries: Role of Institutions’, GDN Conference Paper (January).