
doi: 10.2139/ssrn.260061
One important channel by which market-augmenting government affects economic growth is through its effect on market-mobilized capital the level of capital mobilized by market mechanisms. Market-augmenting government, which is measured in part by both statutory law and law enforcement, affects the magnitude of market-mobilized capital, and through this and other channels, economic growth. This variable, market-mobilized capital, allows us to identify, more clearly than in previous work, the causal links between finance and growth, and to show clear links between statutory law and economic performance.
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| impulse This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network. | Average |
