Question: Problem 4 . ( Institutions ) . Acemoglu, Johnson, and Robinson explore the relationship between property rights and economic development. The authors present three correlations

Problem 4.(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 1995 and GDP in 1995 is positive; (b) the correlation between good property rights in 1995 and settler mortality is negative; and (c) the correlation between GDP in 1995 and settler mortality is negative. Explain how could these correlations be used to argue that property rights in 1995 cause high GDP in 1995. Describe the key assumption to argue that institutions cause economic growth.
Problem 4 . ( Institutions ) . Acemoglu, Johnson,

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