Arbeitspapier
Income and Democracy. A Comment on Acemoglu, Johnson, Robinson, and Yared (2008)
Kieler Arbeitspapiere, 1458
Autoren
Erscheinungsdatum
JEL Classification
D72
O43
Acemoglu, Johnson, Robinson, and Yared (2008) demonstrate that estimation of the standard adjustment model with country-fixed and time-fixed effects removes the statistical significance of income as a causal factor of democracy. We argue that their empirical approach must produce insignificant income effects and that a small change in the estimation process immediately reveals the strong effect of income on democracy.
