Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/230026 
Year of Publication: 
2021
Citation: 
[Journal:] The Scandinavian Journal of Economics [ISSN:] 1467-9442 [Volume:] 123 [Issue:] 1 [Publisher:] Wiley [Place:] Hoboken, NJ [Year:] 2021 [Pages:] 295-326
Publisher: 
Wiley, Hoboken, NJ
Abstract: 
In this paper, motivated by contradictory evidence on the effect of income on democracy, we investigate the hypothesis that it is income shocks – major income fluctuations relative to the trend – rather than marginal year-on-year variation in income levels that lead to non-trivial changes in the quality of political institutions. Empirical results provide support for this hypothesis, and show how income inequality plays a crucial role in the effects of economic shocks on democracy. In particular, negative income shocks reveal a positive effect on democracy in countries with high inequality, and vice versa.
Subjects: 
Downturns
democratization
stability of democracy
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article
Document Version: 
Published Version

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