Working Paper
Income and democracy:
Evidence from system GMM estimates
Benedikt Heid, Julian Langer, Mario Larch
ifo Institut, München, 2011
Ifo Working Paper No. 118
ifo Institut, München, 2011
Ifo Working Paper No. 118
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.
JEL Classification: O100, C330, D720, E210