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Income and democracy: Evidence from system GMM estimates

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  • Heid, Benedikt
  • Langer, Julian
  • Larch, Mario
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 measures of democracy and instrumentation strategies.

Suggested Citation

  • Heid, Benedikt & Langer, Julian & Larch, Mario, 2012. "Income and democracy: Evidence from system GMM estimates," Economics Letters, Elsevier, vol. 116(2), pages 166-169.
    • Handle: RePEc:eee:ecolet:v:116:y:2012:i:2:p:166-169
    DOI: 10.1016/j.econlet.2012.02.009
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    More about this item

    Keywords

    Income; Democracy; Dynamic panel estimators;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • 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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