Abstract
Few research studies examine the effect of income distribution on democracy cross-nationally in a simultaneous equation environment (with democracy also influencing income distribution). The most recent such study asserts that no linear relationship exists between the two variables, without testing for nonlinear relationships. In this study, I operationalize democracy and income distribution for 56 countries over the years 1973-1988. I find through pooled two-stage least-squares estimation that democracy and income distribution have nonlinear effects on each other (inverted U-shaped curves). I reflect on these findings as they affect public policy.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
