Institutions and the Economy by Francesco Duina
By Francesco Duina
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Now, broader institutional variables explain in good part local institutional realities. Schools in poorer neighborhoods are underfunded as a result of the established practice in the United States of funding public school systems with local property taxes. Under-represented interest groups in society enjoy fewer and weaker channels of access to key lawmakers and policymakers. ) that favor some constituents over others (Hacker and Pierson 2007). The recent turmoil in the global economy highlights an additional institutional factor that limits information in the marketplace: the complex nature of contracts that underlie most economic transactions.
Bankers – interface with government) and, of course, in the relative power held by interested parties, cultural trends, technology, and other variables. For instance, in many states, acupuncture became legal in the 1970s and 1980s as mainstream media began documenting its positive effects, practitioners organized themselves more forcefully, and curricula in medical schools allowed for some discussion of it. , without the inclusion from outside of formally forbidden products, or the expulsion from the marketplace of formally accepted products).
Prohibitions typically make things more mysterious for both those who can and cannot consume them. Alcoholic products are no exception. After decades of research, data suggests that while the law has succeeded at reducing overall consumption levels among young people (Wagenaar and Toomey 2000), it has also contributed to binge drinking and to higher consumption levels among college students away from home (Mooney et al. 1992). Much the same logic applies to tobacco products, which in the United States have been required to warn smokers of the dangers of cigarettes since the 1960s.