A farewell to critical junctures: Sorting out long-run causality of income and democracy
Erich Gundlach () and
Economics Working Papers from Department of Economics and Business Economics, Aarhus University
We consider the empirical relevance of two opposing hypotheses on the causality between income and democracy: The Democratic Transition claims that rising incomes cause a transi¬ tion to democracy, whereas the Critical Junctures hypothesis denies this causal relation. Our empirical strategy is justified by Unified Growth Theory, which hypothe¬sizes that the present international income differences have roots in the prehistoric past. Thus, we use prehistoric measures of biogeography as instruments for modern income levels, and find a large long-run causal effect of income on the degree of democracy. This result rejects the Critical Junctures hypothesis, which is an important part of the Primacy of Institutions view.
Keywords: Long-run growth; democracy; unified growth theory; biogeography (search for similar items in EconPapers)
JEL-codes: B25 O1 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev and nep-pol
References: Add references at CitEc
Citations View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
Journal Article: A farewell to critical junctures: Sorting out long-run causality of income and democracy (2009)
Working Paper: A farewell to critical junctures: Sorting out long-run causality of income and democracy (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:aah:aarhec:2008-04
Access Statistics for this paper
More papers in Economics Working Papers from Department of Economics and Business Economics, Aarhus University
Series data maintained by ().