Are All Democracies Equally Good? The Role of Interactions between Political Environment and Inequality for Rule of Law

Uwe Sunde, Matteo Cervellati and Piergiuseppe Fortunato ()

No 2984, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Using cross-country data, we find evidence for a significant negative interaction effect between democracy and inequality in determining the quality of growth-promoting institutions like rule of law. Democracy is associated with institutions of higher quality when inequality is lower.

Keywords: democracy; inequality; interactions; rule of law; institutions (search for similar items in EconPapers)
JEL-codes: O43 P14 P48 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2007-08
New Economics Papers: this item is included in nep-cdm, nep-dev, nep-pol and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published - slightly revised version published in: Economics Letters, 2008, 99 (3), 552-556

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Journal Article: Are all democracies equally good? The role of interactions between political environment and inequality for rule of law (2008)
Working Paper: Are all democracies equally good? The role of interactions between political environment and inequality for rule of law (2008)
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