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...Identifying the effect of institutions on economic growth f docquier discussion paper frederic fnrs and ires universite catholique de louvain forthcoming in schmiegelow h m eds institutional competition between common law civil theory policy springer abstract this chapter describes how quality can be measured quantifies correlation developments reviews discusses literature causal impact a development understanding technology transmission to are challenging issues is due difficulty i disentangling reversing effects ii accounting for unobserved shocks affecting both iii capturing lag structure relationship address these problems existing cross country studies have instrumented using variables reflecting settlement decisions colonizers imperial powers th century while fully recognizing merits methodological rigor show that type institution implemented by was statistically linked factors long run performance hence quantitative predictions must used with caution alternatively collecting dat...