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Inequality, Democracy, and Institutions: A Critical Review of Recent Research

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  • Savoia, Antonio
  • Easaw, Joshy
  • McKay, Andrew

Abstract

Summary This paper surveys the theoretical and empirical literature on the effect of economic and political inequality on institutions. The current understanding suggests that unequal societies develop exploitative and inefficient institutions. Empirical research--which is scant, and has mainly concentrated at cross-national level--supports, to some extent, the existence of an inverse relationship between inequality and institutions, but more analysis is needed. Future empirical research should undertake country, state, and micro-level analysis, which are a necessary complement to aggregate level studies. The effect of inequality could also take place indirectly, through the influence of inequality on democratization.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 38 (2010)
Issue (Month): 2 (February)
Pages: 142-154

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Handle: RePEc:eee:wdevel:v:38:y:2010:i:2:p:142-154

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

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Keywords: inequality institutions democracy;

References

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Cited by:
  1. Isaksson, Ann-Sofie, 2010. "Political participation in Africa: Participatory inequalities and the role of resources," Working Papers in Economics 462, University of Gothenburg, Department of Economics, revised 01 Oct 2010.
  2. Theesfeld, Insa & Pirscher, Frauke (ed.), 2011. "Perspectives on institutional change - water management in Europe," Studies on the Agricultural and Food Sector in Central and Eastern Europe, Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO), volume 58, number 109519.

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