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Working Paper

The agricultural and the democratic transitions. Causality and the Roundup model

Authors

  • Gundlach
  • E.
  • Paldam
  • M.

Publication Date

JEL Classification

O1 P5 Q1

Key Words

causality and spuriousness

Long-run growth

transitions

Long-run development (in income) causes a large fall in the share of agriculture commonly known as the agricultural transition. We confirm that this conventional wisdom is strongly supported by the data. Long-run development (in income) also causes a large increase in democracy known as the democratic transition. Elsewhere we have shown that it is almost as strong as the agricultural transition. Recently, a method has been presented to weed out spuriousness. It makes the democratic transition go away by turning income insignificant, when it is supplemented by a set of formal controls. We show that the same method makes the agricultural transition go away as well. Hence, it seems to be a method that kills far too much, as suggested by the subtitle. This suggestion leads to a discussion of the very meaning of long-run causality.

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Subject Dossiers

  • View over cargo ship deck with containers

    International Trade

Research Center

  • Trade