Plausibly Exogenous [1722] - Settler Mortality (10/20/2024)

LHS Variable
Income per capita

RHS Variable
Institutions

Source of Exogenous Variation
Settler mortality rates during European colonization. The hypothesis is that areas with high settler mortality rates were less likely to develop inclusive, property-protecting institutions because European settlers could not establish long-term colonies. This exogenous variation in institutions (due to mortality rates) is used as an instrument to study its long-term impact on economic performance.

- Acemoglu, Johnson, and Robinson (2001), “The Colonial Origins of Comparative Development: An Empirical Investigation”