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Is the Effect of Income on Democracy Heterogeneous?

Author

Listed:
  • Hugo J. Faria

    (University of Miami)

  • Hugo M. Montesinos-Yufa

    (Florida State University & IESA)

Abstract

Cervellati, Jung, Sunde and Vischer (2014) find heterogeneous effects of income on democracy: negative for colonies and positive for non-colonies. They report different effects of income on democracy within colonies, depending on the quality of early institutions. In this paper, using the same data set as Cervellati et al. (2014) but applying the System GMM estimator, we find a strong, positive, significant and robust effect of income on democracy, both in the full sample of countries and the subsamples of colonies and non-colonies.

Suggested Citation

  • Hugo J. Faria & Hugo M. Montesinos-Yufa, 2017. "Is the Effect of Income on Democracy Heterogeneous?," Working Papers 2017-05, University of Miami, Department of Economics.
  • Handle: RePEc:mia:wpaper:2017-05
    as

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    File URL: http://bus.miami.edu/_assets/files/repec/WP2017-05.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Democracy; Income; Weak Identification; System GMM Estimation Publication Status: Under Review;
    All these keywords.

    JEL classification:

    • 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
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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