Democracy and Efficiency: Making Transition Towards an Empirical Approach
24 Pages Posted: 13 Aug 2009 Last revised: 18 May 2010
Date Written: August 11, 2009
The relationship between democracy and efficiency has long been the interest of both economists and political scientists. However, no general consensus has been reached yet on this topic. There exist two schools of thought who has been pioneered this debate. According to Chicago school of thought, led by Gary Becker and Donald Wittman, democracy produces efficient results while Buchanan and Wagner (1977) and Olson (1982), of Virginia school of thought, think otherwise. However, their arguments for and against democracy was based on theoretical justification. In this paper, the author tries to address the question from purely an empirical point of view.
Keywords: democracy, economics, empirical relationship
JEL Classification: O11
Suggested Citation: Suggested Citation