Keeping Shop: How Does Law Help?

Posted: 22 Apr 1999

See all articles by Timothy Frye

Timothy Frye

Columbia University - Department of Political Science

Date Written: March 1999

Abstract

From relatively similar starting points the Warsaw and Moscow city governments both conducted economic reform strategies, but the legal and economic environments now differ dramatically. Previous research shows that shopkeepers in Moscow are far more likely to hire private protection rackets, to need to use courts, and to bear a much higher regulatory burden than their counterparts in Warsaw. The present study addresses the next logical question: given the difference in legal environments, how different are subsequent costs faced by shopkeepers in the two cities? The answer suggests a measure of the value that economic actors place on the rule of law.

JEL Classification: P21

Suggested Citation

Frye, Timothy, Keeping Shop: How Does Law Help? (March 1999). Available at SSRN: https://ssrn.com/abstract=151129

Timothy Frye (Contact Author)

Columbia University - Department of Political Science ( email )

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