Scandinavian Working Papers in Economics

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

No 04-9: Legal Quality, Inequality, and Tolerance

Christian Bjørnskov ()
Additional contact information
Christian Bjørnskov: Department of Economics, Aarhus School of Business, Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark

Abstract: Previous findings suggest that income inequality leads to lower legal quality. This paper argues that voters’ tolerance of inequality exerts an additional influence. Empirical findings suggest that inequality leads to lower legal quality due to its effect on trust while the tolerance of inequality, proxied by the political ideology of the median voter, exerts an independent influence.

Keywords: Legal Quality; Inequality; Tolerance; Political Economy; Social Capital

JEL-codes: D63; K40; Z13

30 pages, May 27, 2004

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04-9_chbj.pdf PDF-file 

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