摘要：We investigate the role of institutions and human capital on economic performance of Brazilian municipalities. We use
instrumental variables with two-stage least squares estimators for capturing causal relationships. We found evidence
that institutional quality has an important and robust effect on the income of municipalities. However, there is no
robust evidence for the role of human capital. These results are similar to what Acemoglu, Galleano and Robinson
(2014) documented in their research conducted with cross-country data. Human capital is likely to be a consequence
of institutions.
