what is the impact of constitution over institution?
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Constitutions matter for economic performance to the extent that they promote stability, accountability, and credibility. This article considers the nature of political constitutions and their impact on economic efficiency and economic security under three aspects: the basic rights laid down in the constitution, the structure of government, and the stringency of amendment procedures. While emphasizing that constitutions can be useful by serving as pre commitment devices, the analysis also emphasizes the dangers of rigidity and the need for flexibility.
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