1 of 52 University of Missouri – Columbia Contracting and Organizations Research Institute Working Paper No. 2005-07 June 2006 Trial By Fury: Institutions and Southern Productivity Art Carden Washington University Department of Economics Campus Box 1208 1 Brookings Drive Saint Louis MO 63130
[email protected] http://artsci.wustl.edu/~wacarden This paper can be downloaded without charge from the Social Science Research Network electronic library at: http://ssrn.com/abstract= 837766 And from the CORI Working Paper Series Index at: http://cori.missouri.edu/wps 2 of 52 Trial By Fury: Institutions and Southern Productivity Art Carden* Washington University Department of Economics Campus Box 1208 1 Brookings Drive Saint Louis MO 63130
[email protected] http://artsci.wustl.edu/~wacarden This version June 19, 2006 Keywords: lynching, development, institutions, property rights JEL Classifications: D2, K1, N3, O1 Abstract Recent empirical studies suggest that institutions are an important part of the foundation of economic performance through time, and the economic history of the South provides us with an ideal setting in which to examine this relationship in greater detail. This essay extends recent empirical analyses of the relationship between institutions and development by offering a proxy for institutions that incorporates aspects of a society’s rules, norms, and enforcement characteristics. Using data on lynching, this essay argues that poorly defined, poorly enforced property rights contributed to southern poverty at the dawn of the twentieth century. * I wish to thank James Butikofer, John Drobak, Jeremy Jackson, Sukkoo Kim, Jeremy Meiners, Kris James Mitchener, Charles Moul, Douglass C. North, John VC Nye, Tara M.