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Income and democracy: Evidence from nonlinear estimations

Jess Benhabib (), Alejandro Corvalan () and Mark Spiegel ()

Economics Letters, 2013, vol. 118, issue 3, 489-492

Abstract: We test the relation between income and democracy during the postwar period. We employ panel estimation methods that explicitly allow for the fact that the primary measures of democracy are censored with substantial mass at the boundaries. We find that the statistically significant positive income–democracy relationship is robust to the inclusion of country fixed effects.

Keywords: Income; Democracy; Modernization theory; Censoring; Dynamic panel (search for similar items in EconPapers)
JEL-codes: D72 E21 (search for similar items in EconPapers)
Date: 2013
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