Paper: SSRN 188568

Abstract

Six new aggregate measures capturing various dimensions of governance provide new evidence of a strong causal relationship from better governance to better deve

Complexity vs Empirical Score

  • Math Complexity: 3.0/10
  • Empirical Rigor: 6.0/10
  • Quadrant: Street Traders — practical and empirical, lighter on theory

Why this score: The paper uses an unobserved components methodology and a large cross-country dataset, indicating solid empirical rigor and data handling, but the math is primarily statistical and econometric, not dense or highly advanced.

Research Flowchart

  flowchart TD
  Q["Research Question: Does governance quality causally drive economic development?"] --> I["Inputs: New aggregate governance indices; panel data on development"]
  I --> M["Methodology: Instrumental variable and panel data analysis"]
  M --> C["Computation: Regressing development on governance, controlling for fixed effects & endogeneity"]
  C --> F["Outcomes: Strong causal link from better governance to better economic development"]