Insights

The first post established that the WGI and WJP rule of law measures agree on how they rank countries. This follow-up tests the stricter question of whether the WGI can predict the WJP’s levels, rather than just the relative ranking / relative position of countries. It can: forecasting errors appear to be minimal and don’t vary significantly over time.

This post examines whether the Worldwide Governance Indicators' (WGI) rule of law measure provides a reasonable proxy for the World Justice Project's (WJP) Rule of Law Index, such as when analysis might benefit from the WGI's availability for more countries over a longer period. Results suggest the two measures broadly agree with one another when making cross-country comparisons, but care is warranted for country-level estimates where it's likely to be more difficult to differentiate measurement noise from genuine changes in the quality of institutions.