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The effect of income on democracy revisited a flexible distributional approach

Author

Listed:
  • Rajius Idzalika

    (University of Göttingen)

  • Thomas Kneib

    (University of Göttingen)

  • Inmaculada Martinez-Zarzoso

    (University of Göttingen
    University Jaume I)

Abstract

We reexamine the effect of economic development on the level of democracy based on the data sets of Acemoglu et al. (Am Econ Rev 98(3):808–842, 2008) with a novel regression specification utilizing a zero–one-inflated beta distribution for the response variable democracy. Contrary to the results of Acemoglu et al. (2008), some support for a positive association between income and democracy is found when assuming that the variance of explanatory variables is heterogenous. In particular, our results show that rising income is associated with a probability of becoming fully democratic, but income is not generally associated with the mean level of democracy.

Suggested Citation

  • Rajius Idzalika & Thomas Kneib & Inmaculada Martinez-Zarzoso, 2019. "The effect of income on democracy revisited a flexible distributional approach," Empirical Economics, Springer, vol. 56(4), pages 1207-1230, April.
    • Handle: RePEc:spr:empeco:v:56:y:2019:i:4:d:10.1007_s00181-017-1390-7
    DOI: 10.1007/s00181-017-1390-7
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    1. Daron Acemoglu & Simon Johnson & James A. Robinson & Pierre Yared, 2008. "Income and Democracy," American Economic Review, American Economic Association, vol. 98(3), pages 808-842, June.
    2. Daron Acemoglu & Suresh Naidu & Pascual Restrepo & James A. Robinson, 2019. "Democracy Does Cause Growth," Journal of Political Economy, University of Chicago Press, vol. 127(1), pages 47-100.
    3. Esmeralda A. Ramalho & Joaquim J.S. Ramalho & José M.R. Murteira, 2011. "Alternative Estimating And Testing Empirical Strategies For Fractional Regression Models," Journal of Economic Surveys, Wiley Blackwell, vol. 25(1), pages 19-68, February.
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    Cited by:

    1. Tian, Jilin & Sim, Nicholas & Yan, Wenshou & Li, Yanyun, 2020. "Trade uncertainty, income, and democracy," Economic Modelling, Elsevier, vol. 90(C), pages 21-31.

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    More about this item

    Keywords

    Income; Democracy; Beta distribution; Bimodal; OECD;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • C16 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Econometric and Statistical Methods; Specific Distributions

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