Income and democracy: the modernization hypothesis re-visited via alternative non-linear models

Suzanna-Maria Paleologou ()

Empirical Economics, 2015, vol. 48, issue 2, 909-921

Abstract: This paper introduces a new approach to examine the relationship between income and democracy by employing panel count data models to explicitly allow for the fact that the primary indices of democracy are non-negative integers with upper bounds. We find evidence that though income and democracy are positively related the magnitude of the coefficient is extremely small implying that there is no evidence of a causal effect, and thus there is no support for the modernization hypothesis. Moreover, once we control for income endogeneity, the relationship between income and democracy turns to be insignificant or even negative. Copyright Springer-Verlag Berlin Heidelberg 2015

Keywords: Income; Democracy; Modernization hypothesis; Panel count data models; Endogeneity; C23; D72; E21 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://hdl.handle.net/10.1007/s00181-014-0811-0 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:empeco:v:48:y:2015:i:2:p:909-921

Ordering information: This journal article can be ordered from
http://www.springer. ... rics/journal/181/PS2

DOI: 10.1007/s00181-014-0811-0

Access Statistics for this article

Empirical Economics is currently edited by Robert M. Kunst, Arthur H.O. van Soest, Bertrand Candelon, Subal C. Kumbhakar and Joakim Westerlund

More articles in Empirical Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().