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Type: Journal article
Title: Does political and economic inequality affect institutional quality?
Author: Baryshnikova, N.
Pham, N.
Wihardja, M.
Citation: The Economic Record, 2016; 92(297):190-208
Publisher: Economic Society of Australia
Issue Date: 2016
ISSN: 0013-0249
Statement of
Nadezhda V. Baryshnikova, Ngoc T.A. Pham, Maria M. Wihardja
Abstract: We study how inequality, democracy and economic development affect institutions in a dynamic panel model using data for 78 countries from 1984 to 2006. We suggest a model that assumes the sluggish adjustment of institutional quality and the interplay between the key explanatory variables. We find that democracy has a non-linear effect on government stability and military involvement in politics. This effect depends on inequality and GDP per capita. Inequality matters for law and order and has a nonlinear effect as well. However, the results for wealth effect are mixed.
Rights: © 2016 Economic Society of Australia
DOI: 10.1111/1475-4932.12246
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Economics publications

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