How is credibility related to endogeneity?

The principle of endogeneity or endogenous development attempts to chart a way out [of the dilemma why it is so difficult to ‘get institutions right’, PH] by positing that institutions and property rights are the resultant of social actors’ and economic agents’ interaction. In this view, institutions are not shaped and enforced by a single, outside agent, but instead through the mutual interaction of that agent with others. The endogeneity principle therefore precludes an external agency that can shape institutions, as any actor is involved in the ‘game’, albeit institutions may be perceived as externally shaped.” See Peter Ho, “In Defense of Endogenous, Spontaneously Ordered Development: The Institutional Structure of China’s Rural Urban Property Rights”, Journal of Peasant Studies, 2013, Vol. 40, No. 6, 1091–92.

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