Are all democracies equally good? The role of interactions between political environment and inequality for rule of law

Cervellati, Matteo; Fortunato, Piergiuseppe und Sunde, Uwe (2007): Are all democracies equally good? The role of interactions between political environment and inequality for rule of law. IZA Discussion Papers / Forschungsinstitut für Zukunft und Arbeit, Bonn,

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.

• Item Type: Paper
• Faculties: Economics; Economics > Chairs > Chair for Population Economics
• Subjects: 300 Social sciences > 330 Economics
• Language: English