In all, the evidence seems to be fairly clear that democracy is good for economic growth. Why? This is a harder question to answer. Our evidence shows that democracies are better at implementing economic reforms, and also increase education. They also probably increase the provision of public goods (though the evidence here is a little less robust). But none of this is conclusive evidence. Our results from the two papers combined thus suggest an intriguing pattern: contrary to what many have presumed, democracy doesn’t have a huge effect on inequality. But also contrary to what seems to have been almost a consensus, democracy does have a robust and fairly sizable positive effect on economic growth.
Posted on: Sat, 29 Mar 2014 17:20:22 +0000
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