Social Cohesion, Institutions and Public Policies: New Evidence from the MENA region

KASMAOUI, Kamal and ERRAMI, Youssef (2017): Social Cohesion, Institutions and Public Policies: New Evidence from the MENA region.

Abstract

This paper documents the effects of social cohesion and institutions on public policies in the MENA region using the three-stage least squares (3SLS) method for panel data to deal with the problems of simultaneity and correlation of errors. Our main findings show that the impact of social cohesion on public policies is strengthened only at high qualities of institutions. In other words, there is a threshold effect of institutions beyond which social cohesion has a positive impact on public policies.

• Item Type: MPRA Paper
• Language: English
• Keywords: Social cohesion, Trust, Institutions, Public policies, 3SLS
• Subjects: H - Public Economics > H4 - Publicly Provided Goods > H41 - Public Goods; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O10 - General; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O43 - Institutions and Growth

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