Department of Economics and Business Economics

Economic Growth and Institutional Reform in Modern Monarchies and Republics: A Historical Cross-Country Perspective 1820-2000

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  • Christian Bjørnskov
  • Peter Kurrild-Klitgaard, Institut for Statskundskab, University of Copenhagen, Denmark
Conventional arguments suggest that republics ought to grow faster than monar-
chies and experience lower transitional costs following reforms. We employ
a panel of 27 countries observed from 1820 to 2000 to estimate these differences.
Results show no significant growth differences between the two regime types. Ef-
fects of incremental reforms do not differ between them, but those of large-scale
reforms do. Specifically, we find a strong valley-of-tears effect of large reforms in
republics, and monarchies benefit from such reforms in the ten-year perspective
adopted here. We offer some tentative thoughts on the underlying mechanisms
responsible for the results
Original languageEnglish
JournalJournal of Institutional and Theoretical Economics
Volume170
Issue3
Pages (from-to)453-481
Number of pages30
ISSN0932-4569
Publication statusPublished - 2014

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