Social capital can serve as informal governance in weak investor-protection regimes. Using hand-collected data on entrepreneurs’ political connections and firm ownership, we construct several original measures of social capital and examine their effect on the performance of entrepreneurial firms in China after their initial public offerings. Political connections or a high percentage of externa...

In the first half of the twentieth century, dramatic developments in physics came to be viewed as revolutionary, apparently requiring a complete overthrow of previous theories. British physicists were keen to promote quantum physics and relativity theory as exciting and new, but the rhetoric of revolution threatened science’s claim to stability and its prestigious connections with Isaac Newton....

It is a piece of idle senthentality that truth, merely as truth, has any inherent power denied to error, or prevailing against the dungeon and the stake. Men are not more zealous for truth than they often are for error, and a sufficient application oflegal or even of social penalties will generally succeed in stopping the propagation of either. The real advantage which truth has, consists in th...

This paper develops a theory of the interaction between appropriative conflict and economic growth. Appropriative conflict, as measured by the diversion of resources, is viewed as the cost of securing effective property rights. We identify conditions under which conflict rises or falls as the rate of economic growth improves. The main implication of the analysis is that if the quality of proper...