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Economic Effects of Democracy. An Empirical Analysis

  • Francesco Decarolis

    ()

    (Università "Luigi Bocconi", Milano)

This research analyses through the use of instrumental variables estimation whether democracy has an effect on variables belonging to three different categories: fiscal policy, inequality in income distribution and political instability. It shows there is no stable relation between democracy and fiscal policy variables between countries of the sample in the 1978-1988 period. Democracy, on the other hand, significantly affects the difference in middle class income share (positively) and in changes at the top of the executive (negatively).

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File URL: http://www.rivistapoliticaeconomica.it/premio_angcosta/05_Decarolis_69_116.pdf
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Article provided by SIPI Spa in its journal Rivista di Politica Economica.

Volume (Year): 93 (2003)
Issue (Month): 6 (November-December)
Pages: 69-116

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Handle: RePEc:rpo:ripoec:v:93:y:2003:i:6:p:69-116
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