Income and Democracy: A Comment on Acemoglu, Johnson, Robinson, and Yared (2008)

Martin Paldam; Erich Gundlach

Income and Democracy: A Comment on Acemoglu, Johnson, Robinson, and Yared (2008)

Research output: Working paper/Preprint › Working paper › Research

Abstract

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.

Original language	English
Place of publication	Aarhus
Publisher	Institut for Økonomi, Aarhus Universitet
Number of pages	10
Publication status	Published - 2008

Keywords

Democracy, Modernization hypothesis, fixed-effects estimation

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Cite this

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abstract = "Acemoglu, Johnson, Robinson, and Yared (2008) demonstrate that estimation of the standardadjustment model with country-fixed and time-fixed effects removes the statisticalsignificance of income as a causal factor of democracy. We argue that their empiricalapproach must produce insignificant income effects and that a small change in the estimationprocess immediately reveals the strong effect of income on democracy.",

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M3 - Working paper

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PB - Institut for Økonomi, Aarhus Universitet

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Income and Democracy: A Comment on Acemoglu, Johnson, Robinson, and Yared (2008)

Abstract

Keywords

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