Income and Democracy. A Comment on Acemoglu, Johnson, Robinson, and Yared (2008)
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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"Income and Democracy,"
NBER Working Papers
11205, National Bureau of Economic Research, Inc.
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ICER Working Papers
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