Working Papers,
University of Aarhus, Aarhus School of Business, Department of Economics

Abstract: Standard theoretical arguments suggest that republics ought to grow faster than monarchies and experience lower transitional costs following reforms. We employ a panel of 27 countries observed from 18202000 to explore whether regime types and institutional reforms have differential growth effects in monarchies and republics. A set of Barrotype regressions show that there are no significant growth differences between the two regime types and that the effects of incremental reforms do not differ between them, but that those of largescale reforms do. Specifically, we find a strong “valleyoftears” effect of large reforms in republics while monarchies benefit from such reforms in the tenyear perspective adopted here. We offer some tentative thoughts on the underlying mechanisms responsible for the results.

Keywords: Growth; Institution; Reform; Monarchy

JEL-codes: D72; N00; O10; P14; P16; P17; P48; P51

50 pages, July 30, 2008

Full text files

wp_08-15  

Download statistics

• University of Aarhus, Aarhus School of Business, Department of Economics
• Home page for this series

Questions (including download problems) about the papers in this series should be directed to Helle Vinbaek Stenholt ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2024-02-05 17:10:50.