Working Paper
Income and democracy:
Evidence from system GMM estimates
Benedikt Heid, Julian Langer, Mario Larch
ifo Institut, München, 2011
Ifo Working Paper No. 118
ifo Institut, München, 2011
Ifo Working Paper No. 118
![](https://www.ifo.de/DocImg/IfoWorkingPaper-118.jpg?c=1689237095)
Does higher income cause democracy? Accounting for the dynamic nature and high persistence of income and democracy, we find a statistically significant positive relation between income and democracy for a postwar period sample of up to 150 countries. Our results are robust across different model specifications and instrument sets.
Schlagwörter: Income, democracy, dynamic panel estimators
JEL Klassifikation: O100, C330, D720, E210