Template-type: ReDIF-Paper 1.0  
Author-Name: José Antonio Alonso
Author-Workplace-Name: Universidad Complutense de Madrid, Departamento de Economía Aplicada
Author-Name: Carlos Garcimartín
Author-Workplace-Name: Universidad Rey Juan Carlos de Madrid, Departamento de Economía Aplicada
Title: The Determinants of Institutional Quality. More on the Debate
Abstract: This paper provides new evidences about the determinants of institutional quality. Prior to implementing
	our empirical research, we discuss the criteria that should be used to judge the quality of
	institutions. Then, we identify the factors that, according to these criteria, determine institutional
	quality. The results obtained in the estimated model enable to draw some interesting conclusions.
	First of all, development level determines institutional quality: the highest the former, the highest
	the latter. Secondly, income distribution seems to condition institutional quality. A certain degree
	of social cohesion is needed to provide institutional predictability and legitimacy. Thirdly, a sound
	tax system is positively asso-ciated with institutional quality improvement. Taxes provide the necessary
	revenue to ge-nerate quality institutions, while creating a narrower and more demanding
	relation between State and citizens. Finally, education improves institutional quality. On the contrary,
	some of the variables identified in the literature either they do not seem to determine institutional
	quality or their effects are indirect, through the aforementioned variables.
Keywords: Institutional quality, income distribution, taxes, education.
Creation-Date: 2009 
Length: 27 pages
Number:
 0903
X-File-Ref: http://america.sim.ucm.es/repec/ucm/ref/wpaper03-09.txt
File-URL: https://eprints.ucm.es/id/eprint/9665/1/WP_03-09.pdf
File-Format: Application/pdf
File-Function: Full text
Handle: RePEc:ucm:wpaper:0903