Arbeitspapier

Income, democracy, and critical junctures

Acemoglu, Johnson, Robinson, and Yared (2008) document that the cross-country correlation between income per capita and democracy disappears once including country fixed effects. This paper tests the hypothesis that the effect of income on democracy might differ systematically across countries. A replication of the estimation in a less restrictive empirical framework provides evidence for significant but heterogeneous effects of income on democracy for former colonies and non-colonies, as well as within the sample of former colonies. These heterogeneous effects are related to colonial history and early institutions, and are robust to the use of alternative data and estimation techniques.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 7069

Classification
Wirtschaft
Capitalist Systems: Political Economy
Economic Development: General
Subject
critical junctures
democracy
economic development
income
institutions
modernization hypothesis
Sozialprodukt
Demokratie
Entwicklungsstufe
Kolonialismus
Welt

Event
Geistige Schöpfung
(who)
Cervellati, Matteo
Jung, Florian
Sunde, Uwe
Vischer, Thomas
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2012

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Cervellati, Matteo
  • Jung, Florian
  • Sunde, Uwe
  • Vischer, Thomas
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2012

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