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Are all democracies equally good? The role of interactions between political environment and inequality for rule of law

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  • Sunde, Uwe
  • Cervellati, Matteo
  • Fortunato, Piergiuseppe

Abstract

Using cross-country data, we find evidence for a significant interaction effect between democracy and equality in determining the quality of growth-promoting institutions like rule of law. Democracy is associated with better rule of law when inequality is lower.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 99 (2008)
Issue (Month): 3 (June)
Pages: 552-556

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Handle: RePEc:eee:ecolet:v:99:y:2008:i:3:p:552-556

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Web page: http://www.elsevier.com/locate/ecolet

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  4. Easterly, William, 2001. " The Middle Class Consensus and Economic Development," Journal of Economic Growth, Springer, vol. 6(4), pages 317-35, December.
  5. Matteo Cervellati & Piergiuseppe Fortunato & Uwe Sunde, 2008. "Hobbes to Rousseau: Inequality, Institutions and Development," Economic Journal, Royal Economic Society, vol. 118(531), pages 1354-1384, 08.
  6. Keefer, Philip & Knack, Stephen, 2000. "Polarization, politics, and property rights : links between inequality and growth," Policy Research Working Paper Series 2418, The World Bank.
  7. Chong, Alberto & Calderon, Cesar, 2000. "Institutional Quality and Income Distribution," Economic Development and Cultural Change, University of Chicago Press, vol. 48(4), pages 761-86, July.
  8. Rodrik, Dani & Subramanian, Arvind & Trebbi, Francesco, 2002. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," CEPR Discussion Papers 3643, C.E.P.R. Discussion Papers.
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  10. Easterly, W & Levine, R, 1996. "Africa's Growth Tragedy : Policies and Ethnic Divisions," Papers 536, Harvard - Institute for International Development.
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Citations

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Cited by:
  1. Cervellati, Matteo & Fortunato, Piergiuseppe & Sunde, Uwe, 2011. "Democratization and Civil Liberties: The Role of Violence During the Transition," CEPR Discussion Papers 8315, C.E.P.R. Discussion Papers.
  2. A. Soci & A. Maccagnan & D. Mantovani, 2014. "Does inequality harm democracy? An empirical investigation on the UK," Working Papers wp935, Dipartimento Scienze Economiche, Universita' di Bologna.
  3. Garofalo, Maria Rosaria, 2011. "Il volontariato può sostenere lo sviluppo? Riflessioni metodologiche per la costruzione di un frame work teorico
    [Can the voluntary sector sustain the development path of an economy? Suggestions f
    ," MPRA Paper 40008, University Library of Munich, Germany.
  4. Hossein Mirshojaeian Hosseini & Shinji Kaneko, 2012. "Spatial Spillover of Governance and Institutional Quality: A Spatial Econometric Approach," IDEC DP2 Series 2-3, Hiroshima University, Graduate School for International Development and Cooperation (IDEC).
  5. Cervellati, Matteo & Fortunato, Piergiuseppe & Sunde, Uwe, 2005. "Hobbes to Rousseau: Inequality, Institutions, and Development," IZA Discussion Papers 1450, Institute for the Study of Labor (IZA).

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