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Property Rights and Finance

By Simon Johnson, John McMillan, and Christopher Woodruff

American Economic Review, December 2002

Which is the tighter constraint on private sector investment: weak property rights or limited access to external finance? From a survey of new firms in post-communist countries, we find that weak property rights discourage firms from reinvesting their pro...

Vouchers for Private Schooling in Colombia: Evidence from a Randomized Natural Experiment

By Joshua Angrist, Eric Bettinger, Erik Bloom, Elizabeth King, and Michael Kremer

American Economic Review, December 2002

Colombia used lotteries to distribute vouchers which partially covered the cost of private secondary school for students who maintained satisfactory academic progress. Three years after the lotteries, winners were about 10 percentage points more likely to...