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

Uwe Sunde; Matteo Cervellati; Piergiuseppe Fortunato

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.

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Year of publication:	Aug. 2007
Other Persons:	Sunde, Uwe (contributor) ; Cervellati, Matteo (contributor) ; Fortunato, Piergiuseppe (contributor)
Publisher:	Bonn : IZA
Subject:	Demokratie \| Democracy \| Rechtsstaat \| Rule of law \| Soziale Ungleichheit \| Social inequality \| Politische Instabilität \| Political instability \| Institutionenökonomik \| Institutional economics \| Welt \| World