Income and Democracy: A Comment on Acemoglu, Johnson, Robinson, and Yared (2008)

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Income and Democracy: A Comment on Acemoglu, Johnson, Robinson, and Yared (2008)

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Erich Gundlach
Martin Paldam () (School of Economics and Management, University of Aarhus, Denmark)

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Erich Gundlach

Abstract

Acemoglu, Johnson, Robinson, and Yared (2008) demonstrate that estimation of the standard adjustment model with country-fixed and time-fixed effects removes the statistical significance of income as a causal factor of democracy. We argue that their empirical approach must produce insignificant income effects and that a small change in the estimation process immediately reveals the strong effect of income on democracy.

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Paper provided by School of Economics and Management, University of Aarhus in its series Economics Working Papers with number 2008-13.

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Length: 10
Date of creation: 15 Oct 2008
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Handle: RePEc:aah:aarhec:2008-13

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Paper
- Erich Gundlach & Martin Paldam, 2008. "Income and Democracy. A Comment on Acemoglu, Johnson, Robinson, and Yared (2008)," Kiel Working Papers 1458, Kiel Institute for the World Economy. [Downloadable!]

Find related papers by JEL classification:
D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior
O43 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

This paper has been announced in the following NEP Reports:

NEP-ALL-2008-10-21 (All new papers)
NEP-ECM-2008-10-21 (Econometrics)
NEP-POL-2008-10-21 (Positive Political Economics)

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

Daron Acemoglu & Simon Johnson & James A. Robinson & Pierre Yared, 2008. "Income and Democracy," American Economic Review, American Economic Association, vol. 98(3), pages 808-42, June. [Downloadable!]
Other versions:
- Daron Acemoglu & Simon Johnson & James Robinson & Pierre Yared, 2005. "Income and Democracy," NBER Working Papers 11205, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
- Acemoglu, Daron & Johnson, Simon & Robinson, James A & Yared, Pierre, 2005. "Income and Democracy," CEPR Discussion Papers 5273, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
Borooah, Vani K. & Paldam, Martin, 2007. "Why is the world short of democracy?: A cross-country analysis of barriers to representative government," European Journal of Political Economy, Elsevier, vol. 23(3), pages 582-604, September. [Downloadable!] (restricted)
Other versions:
- Vani K. Borooah & Martin Paldam, 2006. "Why is the World Short of Democracy? A Cross-Country Ananlysis of Barriers to Representative Government," ICER Working Papers 28-2006, ICER - International Centre for Economic Research. [Downloadable!]
Rachel Griffith & Helen Simpson, 2001. "Characteristics of foreign-owned firms in British manufacturing," IFS Working Papers W01/10, Institute for Fiscal Studies. [Downloadable!]
Other versions:
- Rachel Griffith & Helen Simpson, 2003. "Characteristics of Foreign-Owned Firms in British Manufacturing," NBER Working Papers 9573, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
- Rachel Griffith & Helen Simpson, 2004. "Characteristics of Foreign-Owned Firms in British Manufacturing," NBER Chapters, in: Seeking a Premier Economy: The Economic Effects of British Economic Reforms, 1980-2000, pages 147-180 National Bureau of Economic Research, Inc. [Downloadable!]
Chiara Criscuolo & Ralf Martin, 2004. "Multinationals and U.S. Productivity Leadership: Evidence from Great Britain," OECD Science, Technology and Industry Working Papers 2004/5, OECD, Directorate for Science, Technology and Industry. [Downloadable!]
Other versions:
- Chiara Criscuolo & Ralf Martin, 2005. "Multinationals and US Productivity Leadership: Evidence from Great Britain," CEP Discussion Papers dp0672, Centre for Economic Performance, LSE. [Downloadable!]
- Chiara Criscuolo & Ralf Martin, 2009. "Multinationals and U.S. Productivity Leadership: Evidence from Great Britain," The Review of Economics and Statistics, MIT Press, vol. 91(2), pages 263-281, October. [Downloadable!] (restricted)

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