The growth effect of democracy: is it heterogenous and how can it be estimated?

Arbeitspapier

We estimate the effect of political regime transitions on growth with semi-parametric methods, combining difference in differences with matching, that have not been used in macroeconomic settings. Our semi-parametric estimates suggest that previous parametric estimates may have seriously underestimated the growth effects of democracy. In particular, we find an average negative effect on growth of leaving democracy on the order of ?2 percentage points implying effects on income per capita as large as 45 percent over the 1960- 2000 panel. Heterogenous characteristics of reforming and non-reforming countries appear to play an important role in driving these results.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 2016

Classification and Topics

• Classification: Wirtschaft
• Subject: Politische Reform ; Demokratisierung ; Wohlfahrtseffekt ; Wirtschaftswachstum ; Ökonometrisches Modell ; Welt

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Persson, Torsten ; Tabellini, Guido
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/26061
• Last update: 10.03.2025, 11:45 AM CET