Exiting a Lawless State

Hoff, Karla; Stiglitz, Joseph E.

doi:10.1596/1813-9450-4520

Publication:
Exiting a Lawless State

dc.contributor.author	Hoff, Karla
dc.contributor.author	Stiglitz, Joseph E.
dc.date.accessioned	2012-05-29T18:50:36Z
dc.date.available	2012-05-29T18:50:36Z
dc.date.issued	2008-02
dc.description.abstract	An earlier paper showed that an economy could be trapped in an equilibrium state in which the absence of the rule of law led to asset-stripping, and the prevalence of asset-stripping led to the absence of a demand for the rule of law, highlighting a coordination failure. This paper looks more carefully at the dynamics of transition from a non-rule-of-law state. The paper identifies a commitment problem as the critical feature inhibiting the transition: the inability, under a rule of law, to forgive theft. This can lead to the perpetuation of the non-rule-of-law state, even when it might seem that the alternative is Pareto-improving.	en
dc.identifier	http://documents.worldbank.org/curated/en/2008/02/9048193/exiting-lawless-state
dc.identifier.uri	http://hdl.handle.net/10986/6589
dc.language	English
dc.publisher	World Bank, Washington, DC
dc.relation.ispartofseries	Policy Research Working Paper; No. 4520
dc.rights	CC BY 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	http://creativecommons.org/licenses/by/3.0/igo/
dc.subject	ABUSE
dc.subject	ABUSE OF POWER
dc.subject	AGENCY PROBLEMS
dc.subject	ANTICORRUPTION
dc.subject	ANTICORRUPTION CAMPAIGNS
dc.subject	ASSASSINATION
dc.subject	ASSET STRIPPING
dc.subject	ASSET VALUES
dc.subject	ASSETS
dc.subject	AUTHORITARIAN RULE
dc.subject	AUTHORITARIANISM
dc.subject	AUTHORITY
dc.subject	BENEFICIARIES
dc.subject	BRIBE
dc.subject	BUSINESSMEN
dc.subject	CAPITAL INFLOWS
dc.subject	CITIZENS
dc.subject	CLAIMANT
dc.subject	COLLAPSE
dc.subject	COLONIAL COUNTRIES
dc.subject	COMMERCIAL LAW
dc.subject	COMMON PROPERTY
dc.subject	COMMUNISM
dc.subject	COMMUNIST
dc.subject	COMMUNIST PARTY
dc.subject	COMPENSATION
dc.subject	CONSTITUENCIES
dc.subject	CONSTITUENCY
dc.subject	CORPORATE GOVERNANCE
dc.subject	CORPORATE GOVERNANCE MECHANISMS
dc.subject	CORRUPTION
dc.subject	COURT
dc.subject	COURT DECISION
dc.subject	CREDIT RATIONING
dc.subject	CRIMINAL
dc.subject	CRONIES
dc.subject	DEMOCRACY
dc.subject	DEMOCRATIC GOVERNANCE
dc.subject	DEPENDENT
dc.subject	DEVELOPMENT ECONOMICS
dc.subject	DICTATORSHIP
dc.subject	EAST EUROPEAN
dc.subject	ECONOMIC GROWTH
dc.subject	ECONOMIC HISTORIANS
dc.subject	ECONOMIC REFORM
dc.subject	ECONOMIC REFORMS
dc.subject	ECONOMIC THEORY
dc.subject	ECONOMICS
dc.subject	EFFICIENT OUTCOMES
dc.subject	ELECTED OFFICIALS
dc.subject	EMPLOYMENT
dc.subject	ENTERPRISE RESTRUCTURING
dc.subject	EXTERNALITIES
dc.subject	FINANCIAL PROBLEMS
dc.subject	FISCAL COSTS
dc.subject	FREE MARKET
dc.subject	GANGS
dc.subject	GOVERNMENT POLICIES
dc.subject	GOVERNMENT SPENDING
dc.subject	HISTORIANS
dc.subject	ILLEGITIMATE CHILDREN
dc.subject	INCOME
dc.subject	INEQUALITY
dc.subject	INSTITUTIONAL DEVELOPMENT
dc.subject	INSTITUTIONAL ENVIRONMENT
dc.subject	INSTITUTIONAL FOUNDATIONS
dc.subject	INSTITUTIONAL REFORM
dc.subject	INTEREST RATE
dc.subject	INTERNATIONAL CAPITAL
dc.subject	INTERNATIONAL CAPITAL FLOWS
dc.subject	INVESTIGATION
dc.subject	INVESTIGATORS
dc.subject	JUSTICE
dc.subject	LABOR ADJUSTMENT COSTS
dc.subject	LAW ENFORCEMENT
dc.subject	LAWS
dc.subject	LEADERSHIP
dc.subject	LEGAL REFORM
dc.subject	LEGAL SYSTEM
dc.subject	LEGALITY
dc.subject	LEGITIMACY
dc.subject	LOBBYING
dc.subject	MARKET ECONOMY
dc.subject	MEDIA
dc.subject	MINISTER
dc.subject	MONETARY POLICY
dc.subject	MULTIPLE EQUILIBRIA
dc.subject	NATIONAL POLICIES
dc.subject	NATIONALIZATION
dc.subject	OPPORTUNISTIC BEHAVIOR
dc.subject	PAYOFF
dc.subject	PAYOFFS
dc.subject	POLITICAL CONSENSUS
dc.subject	POLITICAL CORRUPTION
dc.subject	POLITICAL ECONOMY
dc.subject	POLITICAL INSTITUTIONS
dc.subject	POLITICAL RISKS
dc.subject	POLITICIANS
dc.subject	POSSESSION
dc.subject	PRINCIPAL ASSETS
dc.subject	PRIVATE OWNERSHIP
dc.subject	PRIVATIZATION
dc.subject	PROPERTY RIGHTS
dc.subject	PROSECUTION
dc.subject	PROTECTION OF PROPERTY
dc.subject	PUBLIC OFFICIALS
dc.subject	PUBLIC SECTOR
dc.subject	PUBLIC SPENDING
dc.subject	RECAPTURE OF ASSETS
dc.subject	RENTS
dc.subject	REVOLUTION
dc.subject	RULE OF LAW
dc.subject	SECURITIES LAW
dc.subject	SOCIAL COST
dc.subject	SOCIAL WELFARE
dc.subject	STATE ASSETS
dc.subject	STATE ENTERPRISES
dc.subject	STATE INSTITUTIONS
dc.subject	STATE OWNERSHIP
dc.subject	STATE POWER
dc.subject	THEFT
dc.subject	TIGHT MONETARY POLICY
dc.subject	TRANSITION ECONOMIES
dc.subject	TRANSITION ECONOMY
dc.subject	VICTIMS
dc.subject	VOTING
dc.subject	WILL
dc.subject	WORLD POLITICS
dc.title	Exiting a Lawless State	en
dspace.entity.type	Publication
okr.crosscuttingsolutionarea	Jobs
okr.crosscuttingsolutionarea	Gender
okr.doctype	Publications & Research :: Policy Research Working Paper
okr.doctype	Publications & Research
okr.docurl	http://documents.worldbank.org/curated/en/2008/02/9048193/exiting-lawless-state
okr.globalpractice	Social Protection and Labor
okr.globalpractice	Finance and Markets
okr.globalpractice	Governance
okr.identifier.doi	10.1596/1813-9450-4520
okr.identifier.externaldocumentum	000158349_20080303093321
okr.identifier.internaldocumentum	9048193
okr.identifier.report	WPS4520
okr.language.supported	en
okr.pdfurl	http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2008/03/03/000158349_20080303093321/Rendered/PDF/wps4520.pdf	en
okr.topic	Gender :: Gender and Law
okr.topic	Public Sector Corruption and Anticorruption Measures
okr.topic	Finance and Financial Sector Development :: Bankruptcy and Resolution of Financial Distress
okr.topic	Social Protections and Labor :: Labor Policies
okr.topic	Governance :: National Governance
okr.topic	Public Sector Development
okr.unit	Development Research Group (DECRG)
okr.volume	1 of 1
relation.isSeriesOfPublication	26e071dc-b0bf-409c-b982-df2970295c87