This paper investigates the determinants of government quality across a large cross-section of countries. It assesses government performance using measures of intervention, public sector efficiency, public good provision, government size, and political freedom. The study finds that countries that are poor, near the equator, ethnolinguistically heterogeneous, use French or socialist laws, or have high proportions of Catholics or Muslims tend to have inferior government performance. Larger governments tend to perform better. Historical factors play a significant role in explaining variations in government performance, shedding light on economic, political, and cultural theories of institutions. The paper examines three broad categories of theories: economic, political, and cultural. Economic theories suggest that institutions are created when the social benefits of building them exceed the transaction costs. Political theories focus on redistribution and suggest that policies and institutions are shaped by those in power to stay in power and transfer resources to themselves. Cultural theories suggest that societies hold beliefs that shape collective action and government. The study finds that per capita income is strongly associated with government performance, but economic theories are not the whole story. Political and cultural factors also play a significant role. Ethnolinguistic heterogeneity and the use of more interventionist legal systems, such as socialist or French civil law, predict inferior government performance. Significant shares of Catholics or Muslims in the population also predict inferior government performance. The influence of religion on government performance has political and cultural interpretations. The paper presents regression results showing that per capita income has a strong positive effect on government performance. Ethnolinguistic fractionalization (EF) has a consistently adverse effect on government performance, suggesting that ethnic groups in power tend to redistribute. Legal origin also plays a significant role, with socialist legal origin countries being more interventionist and less efficient than common law countries. The study concludes that historical factors, as suggested by political and cultural theories, help explain variations in government performance across countries.This paper investigates the determinants of government quality across a large cross-section of countries. It assesses government performance using measures of intervention, public sector efficiency, public good provision, government size, and political freedom. The study finds that countries that are poor, near the equator, ethnolinguistically heterogeneous, use French or socialist laws, or have high proportions of Catholics or Muslims tend to have inferior government performance. Larger governments tend to perform better. Historical factors play a significant role in explaining variations in government performance, shedding light on economic, political, and cultural theories of institutions. The paper examines three broad categories of theories: economic, political, and cultural. Economic theories suggest that institutions are created when the social benefits of building them exceed the transaction costs. Political theories focus on redistribution and suggest that policies and institutions are shaped by those in power to stay in power and transfer resources to themselves. Cultural theories suggest that societies hold beliefs that shape collective action and government. The study finds that per capita income is strongly associated with government performance, but economic theories are not the whole story. Political and cultural factors also play a significant role. Ethnolinguistic heterogeneity and the use of more interventionist legal systems, such as socialist or French civil law, predict inferior government performance. Significant shares of Catholics or Muslims in the population also predict inferior government performance. The influence of religion on government performance has political and cultural interpretations. The paper presents regression results showing that per capita income has a strong positive effect on government performance. Ethnolinguistic fractionalization (EF) has a consistently adverse effect on government performance, suggesting that ethnic groups in power tend to redistribute. Legal origin also plays a significant role, with socialist legal origin countries being more interventionist and less efficient than common law countries. The study concludes that historical factors, as suggested by political and cultural theories, help explain variations in government performance across countries.