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Income and democracy: Evidence from system GMM estimates

Author

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  • Benedikt Heid
  • Julian Langer
  • Mario Larch

Abstract

Does higher income cause democracy? Accounting for the dynamic nature and high persistence of income and democracy, we find a statistically significant positive relation between income and democracy for a postwar period sample of up to 150 countries. Our results are robust across different model specifications and instrument sets.

Suggested Citation

  • Benedikt Heid & Julian Langer & Mario Larch, 2011. "Income and democracy: Evidence from system GMM estimates," ifo Working Paper Series 118, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
  • Handle: RePEc:ces:ifowps:_118
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Income; democracy; dynamic panel estimators;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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