by Massachusetts Institute of Technology, Dept. of Economics in Cambridge, Mass .
Written in English
We revisit one of the central empirical findings of the political economy literature that higher income per capita causes democracy. Existing studies establish a strong cross-country correlation between income and democracy, but do not typically control for factors that simultaneously affect both variables. We show that controlling for such factors by including country fixed effects removes the statistical association between income per capita and various measures of democracy. We also present instrumental-variables estimates using two different strategies. These estimates also show no causal effect of income on democracy. Furthermore, we reconcile the positive cross-country correlation between income and democracy with the absence of a causal effect of income on democracy by showing that the long-run evolution of income and democracy is related to historical factors. Consistent with this, the positive correlation between income and democracy disappears, even without fixed effects, when we control for the historical determinants of economic and political development in a sample of former European colonies. Keywords: democracy, economic growth, institutions, political development. JEL Classifications: P16, O10.
|Statement||Daron Acemoglu ... [et al.].|
|Series||Working paper series / Massachusetts Institute of Technology, Dept. of Economics -- working paper 05-05, Working paper (Massachusetts Institute of Technology. Dept. of Economics) -- no. 05-05.|
|Contributions||Massachusetts Institute of Technology. Dept. of Economics|
|The Physical Object|
|Pagination||35,  p. :|
|Number of Pages||35|
Get this from a library! Income and democracy. [Daron Acemoglu; National Bureau of Economic Research.;] -- "We revisit one of the central empirical findings of the political economy literature that higher income per capita causes democracy. Existing studies establish a . Income and Democracy by Daron Acemoglu, Simon Johnson, James A. Robinson and Pierre Yared. Published in vol issue 3, pages of American Economic Review, June , Abstract: Existing studies establish a strong cross-country correlation between income and democracy but do not control fo. Get this from a library! Income and Democracy.. [Anke Hoeffler; Robert H Bates; Ghada Fayad] -- We revisit Lipset?s law, which posits a positive and significant relationship between income and democracy. Using dynamic and heterogeneous panel data estimation techniques, we find a significant and. Downloadable! This paper puts forth a unified theory of growth and polity in which economic development affects a country's polity and polity affects its development. Education crucially impacts both trajectories, first by moving resources out of the traditional sector and decreasing incomes of the landed class and second, by increasing the de facto power of the : Stephen L. Parente, Luis Felipe Sáenz, Anna Seim.
Democracy and Income The questions will be: 1 Why is democracy more sustainable at high levels of income but not at low levels? 2 Are growth, and democracy, driven by good institutions (property rights, rule of law, constraints on executive) or are they endogenous, primarily a function of wealth or income?File Size: 1MB. Books shelved as democracy: How Democracies Die: What History Reveals About Our Future by Steven Levitsky, Democracy in America by Alexis de Tocqueville. Compared with U.S. citizens of higher income, those of lower income are a. much less likely to vote in elections. b. about equally likely to vote in elections. c. much more likely to vote in elections. d. much less likely to vote in elections—a pattern that is also true in European democracies. e. None of these answers is correct. Democracy and Income Inequality: This book is intended for the wide range of people around the world who need basic information about the work of the Bank Group. This audience includes people working in all aspects of development, students, members of the general public, and staff members of the Bank Group itself. Initial conditions.
The cross-country correlation between income and democracy reflects a positive correlation between changes in income and democracy over the past years. This pattern is consistent with the idea that societies embarked on divergent political-economic development paths at certain critical by: Even if democracy eventually emerges, it might not be stable in the long run but only be a temporary phenomenon. Hence, democracy might fail if income discrepancies and redistributive tensions between the different social groups become too large. The model characterizes the conditions under which this is the by: Wealth and Democracy can be seen as a sequel to The Politics of Rich and Poor. In this new book, Phillips attempts to support his argument by developing its historical and theoretical bases. The popular contention that income inequality is turning our democracy into an oligarchy that serves only the rich is buttressed by several well-cited, but fundamentally flawed, academic studies.