Forms of Democracy, Policy and Economic Development

Persson, Torsten

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Forms of Democracy, Policy and Economic Development

47 Pages Posted: 18 Jul 2005

See all articles by Torsten Persson

Torsten Persson

Stockholm University - Institute for International Economic Studies (IIES); London School of Economics & Political Science (LSE); National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

There are 3 versions of this paper

Date Written: February 2005

Abstract

The paper combines insights from the recent research programs on constitutions and economic policy, and on history, institutions and growth. Drawing on cross-sectional as well as panel data, it presents new empirical results showing that the form of democracy (rather than democracy vs. non-democracy) has important consequences for the adoption of structural polices that promote long-run economic performance. Reforms into parliamentary (as opposed to presidential), proportional (as opposed to majoritarian) and permanent (as opposed to temporary) democracy appear to produce the most growth-promoting policies.

Keywords: Democratic institutions, growth promoting policy, economic performance

JEL Classification: F43, H11, O57

Suggested Citation: Suggested Citation

Persson, Torsten, Forms of Democracy, Policy and Economic Development (February 2005). Available at SSRN: https://ssrn.com/abstract=763606