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

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

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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File URL: http://www.sciencedirect.com/science/article/B6V84-4PW5XFY-4/1/454014309e78d91af4dd51e9323c5f8c
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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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  11. Stephen Knack & Philip Keefer, 1995. "Institutions And Economic Performance: Cross-Country Tests Using Alternative Institutional Measures," Economics and Politics, Wiley Blackwell, vol. 7(3), pages 207-227, November.
  12. Alberto E. Chong & Mark Gradstein, 2004. "Inequality and Institutions," IDB Publications (Working Papers) 5658, Inter-American Development Bank.
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