Scandinavian Working Papers in Economics

Research Papers in Economics,
Stockholm University, Department of Economics

No 2002:16: Democracy, Consolidation and Growth

Jan Pettersson ()
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Jan Pettersson: Dept. of Economics, Stockholm University, Postal: Department of Economics, Stockholm University, S-106 91 Stockholm, Sweden

Abstract: Papers relating the level of democracy to growth do not typically control for defferences within types of polity. This paper examines one important difference, that of regime stability, measured as the longevity of a regime. It is shown that there are initial costs associated with young democracies while over time democracies tend to outperform other types of polity.

Keywords: democracy; growth; consolidation; political systems

JEL-codes: O10; P16

47 pages, First version: June 6, 2003. Revised: December 15, 2004.

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