Browsing by Subject "Institutional reform"

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    The nexus of economic and institutional evolution
    (Elsevier, 2016) Neyapti, B.; Arasil, Y.
    The current state of the development economics literature ascribes an indisputable central role to institutions. This paper presents a formal model of institutional evolution that is based on the dynamic interactions between formal and informal institutions and economic development; the main features of the model is consistent with the fundamental theories that shed light to institutional evolution, namely the collective action and transaction cost theories, as well as dialectics. As informal institutional quality accumulates like technological know-how, while the level of formal institutional quality is chosen by the government to maximize welfare, subject to the economic and political costs. The solution of the model yields a punctuated trajectory of formal institutional evolution. Simulations reveal that the extent of diversity in informal institutional quality across a country delays formal institutional reforms. We also observe that, both the optimal quality of formal institutions and welfare are higher the more homogeneous is the country with respect to its informal institutions or the cultural attributes. © 2015 Elsevier B.V.
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    Turkey's experience with disinflation: where did all the welfare gains go?
    (Routledge, 2013) Neyapti, B.
    This article measures the welfare gains from disinflation in Turkey during the 2000s. Estimated welfare gains exceed the real output gains, which is likely to arise from persisting allocative inefficiencies, pointing at the need for further structural and institutional reforms for the benefits of price stability to be utilized towards achieving sustainable development. © 2013 Copyright Taylor and Francis Group, LLC.