Department of Economics and Business Economics

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

Research output: Working paperResearch

  • Martin Paldam
  • Erich Gundlach, Kiel Institute for the World Economy, Germany
  • School of Economics and Management
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 languageEnglish
Place of publicationAarhus
PublisherInstitut for Økonomi, Aarhus Universitet
Number of pages10
Publication statusPublished - 2008

    Research areas

  • Democracy, Modernization hypothesis, fixed-effects estimation

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ID: 12924308