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Can democracy induce development? A constitutional perspective

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  • Hans Gersbach

    ()

  • Lars-H. Siemers

    ()

Abstract

We examine the constitutional design required for democratic societies to overcome poverty traps. Restricting agenda setting by ensuring subsistence levels of consumption and applying simple majority voting as a decision rule will not enable a society to overcome poverty. We show that a combination of suitable constitutional rules can, however, overcome poverty and induce economic well-being. Besides majority voting, these rules include rotating agenda setting, agenda repetition, and tax-protection rules. We thus highlight the crucial role of democratic institutions for economic development. Copyright Springer Science+Business Media New York 2014

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Bibliographic Info

Article provided by Springer in its journal Public Choice.

Volume (Year): 159 (2014)
Issue (Month): 1 (April)
Pages: 177-196

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Handle: RePEc:kap:pubcho:v:159:y:2014:i:1:p:177-196

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Web page: http://www.springerlink.com/link.asp?id=100332

Related research

Keywords: Constitutional design; Institutions; Poverty traps; Redistribution; Tax allowances; Voting rules; D72; E62; H23; H53; O11;

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