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Cervellati, Matteo; Fortunato, Piergiuseppe; Sunde, Uwe (2008): Are all democracies equally good? The role of interactions between political environment and inequality for rule of law. In: Economics Letters, Vol. 99, No. 3: pp. 552-556
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Using cross-country data, we find evidence for a significant interaction effect between democracy and equality in determining the quality of growth-promoting institutions like rule of law. Democracy is associated with better rule of law when inequality is lower.