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 for the Study of Labor (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: inequality; democracy; institutions; rule of law; interactions (search for similar items in EconPapers)
JEL-codes: O43 P48 P14 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cdm, nep-dev, nep-pol and nep-soc
Date: Written
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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)
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