Income and Democracy: Revisiting the Evidence

26 Pages Posted: 11 Jul 2011

See all articles by Enrique Moral-Benito

Enrique Moral-Benito

Banco de España; Universidad Carlos III de Madrid

Cristian Bartolucci

affiliation not provided to SSRN

Date Written: July 11, 2011

Abstract

It is well-known in the literature that income per capita is strongly correlated with the level of democracy across countries. In an influential paper, Acemoglu et al. (2008) find that this linear correlation disappears once they control for country-specific effects focusing on within-country variation. In this paper we find evidence of a non-linear effect from income to democracy even after controlling for country-specific effects. While a positive effect emerges for poor countries, this effect vanishes for rich countries.

Keywords: democracy, income, lipset hypothesis, panel data

JEL Classification: D72, E21, C23

Suggested Citation

Moral-Benito, Enrique and Bartolucci, Cristian, Income and Democracy: Revisiting the Evidence (July 11, 2011). Banco de Espana Working Paper No. 1115. Available at SSRN: https://ssrn.com/abstract=1883428 or http://dx.doi.org/10.2139/ssrn.1883428

Enrique Moral-Benito (Contact Author)

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

Universidad Carlos III de Madrid ( email )

CL. de Madrid 126
Madrid, Madrid 28903
Spain

Cristian Bartolucci

affiliation not provided to SSRN ( email )

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