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ECON 4915
Lecture 11
Andreas Kotsadam
Outline
• Questions from you.
• Property rights?
• Social norms?
• Democracy?
The relationship between
democracy and growth
• Why would democracy affect growth?
Autocracy 9
Democracy 1
The World Bank Growth
Commission
• “Growth at such a quick pace, over such a
long period, requires strong political
leadership.”
Failure Neither Success
Autocracy 10 70 9
Democracy 0 12 1
• The argument suffers from a bias called:
State
variables
2 sources of persistence
• Political institutions are durable.