Simply defined as the "rules of the game in a society" institutions are meant to facilitate human interaction by providing patterns that will regulate society's behavior. Their presence reduces uncertainty by providing a structure to everyday life. Hence institutional constraints promote some individual behavior and prohibit other behavior. Some of institutions are formal(eg, bank regulation, tax system, accounting rules), others are informal (eg, codes of conduct, habits,norms). While most analyses focus on the former, the latter can be even more important when we try explain a country's economic performance