Question: Problem 4 . ( Institutions ) . Acemoglu, Johnson, and Robinson explore the relationship between property rights and economic development. The authors present three correlations
Problem Institutions Acemoglu, Johnson, and Robinson explore the relationship between property rights and economic development. The authors present three correlations in the data on former colonies: a The correlation between property rights in and GDP in is positive; b the correlation between good property rights in and settler mortality is negative; and c the correlation between GDP in and settler mortality is negative. Explain how could these correlations be used to argue that property rights in cause high GDP in Describe the key assumption to argue that institutions cause economic growth.
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