Series: IMF Working Papers
Author(s): Anke Hoeffler , Robert H. Bates , and Ghada Fayad
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 17 December 2012
Keywords: democracy, dynamic panel data, parameter heterogeneity, cross-section dependence, time series, democratization, error correction coefficient, econometrics, political institutions, Models with Panel Data
We revisit Lipset‘s law, which posits a positive and significant relationship between income and democracy. Using dynamic and heterogeneous panel data estimation techniques, we find a significant and negative relat...