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Reform chatter and democracy

Author

Listed:
  • Arezki, Rabah
  • Djankov, Simeon
  • Nguyenc, Ha
  • Yotzov, Ivan

Abstract

We explore the dynamics of media chatter about economic reforms using text analysis from about a billion newspaper articles in 28 languages. We show that the intensity of reform chatter increases during economic downturns. This increase is more significant in democracies. Using instrumental variable techniques, we find the relationship to be causal. We also document that reform chatter is followed by actual reforms, suggesting that democracies benefit from a "self- correcting" mechanism stemming from changing popular attitudes towards reform.

Suggested Citation

  • Arezki, Rabah & Djankov, Simeon & Nguyenc, Ha & Yotzov, Ivan, 2020. "Reform chatter and democracy," LSE Research Online Documents on Economics 118883, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:118883
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    References listed on IDEAS

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    Cited by:

    1. Arezki, Rabah & Simeon Djankov, Simeon & Nguyen, Ha & Yotzov, Ivan, 2021. "Reversal of Fortune for Political Incumbents : Evidence from Oil Shocks," The Warwick Economics Research Paper Series (TWERPS) 1362, University of Warwick, Department of Economics.

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    More about this item

    Keywords

    reform; chatter; media; business cycle; democracy;
    All these keywords.

    JEL classification:

    • P10 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - General
    • P40 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - General
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)

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