« Efficient rent-seeking | Main | Denver bleg »
Democracy is better for growth than you think
1. Read here. Angus is (or should be?) making economic growth a central topic of that blog.
2. *How* to overcome bias, sort of.
3. Racial mismatch.
4. New incentives at BestBuy (via Kottke), let me tell you they need them.
Posted by Tyler Cowen on June 20, 2007 at 12:55 PM in Economics | Permalink
Comments
"Democracy is better for growth than you think," actually I am not sure
what you mean by this? But I think Daron Acemoglu (05 clark medal winner) has
shown that Democracy is good for maintaining a balance between growth and
inequality. High growth increases inequality, but democracy helps reduce it because
high inequality societies are more unstable i.e. democracy is inefficient for
growth, but good for stability.
Posted by: Jack Sparrow at Jun 20, 2007 2:25:47 PM
"but good for stability."... which is good for long-run growth.
Tyler is referencing the body of literature (also noted by the author in the link) suggesting democracy has a negative effect (correlation?) on growth.
Posted by: Captain Hook at Jun 20, 2007 3:21:08 PM
Only in places where the population has a medium IQ level. In places like Africa, where IQ's can average 70, democracy makes no sense because the people are clueless. Why don't African leaders unleash the power of their people, like China's have done? Because African leaders KNOW Africans are not Chinese, and have no potential. Democracy doesn't work with Africans, they are too destructive and incompetent.
Posted by: adrian at Jun 20, 2007 3:42:34 PM
Singapore and Dubai do pretty well without it, but I suppose they're unrepresentative. I think it's not democracy that's good or bad, but other factors correlated with it.
Posted by: TGGP at Jun 21, 2007 2:36:09 AM
Cap'n Jack, democracy good for stability? Fidel Castro has Cuba in a very stable political system, and it's hardly democratic.
Bangladesh, on the other hand, is highly democratic - they vote on every single damn thing. What progress do they have? When one party gets power, they will override whatever progress/landmarks the previous party done. And viceversa.
Posted by: Chewxy at Jun 21, 2007 5:12:49 AM
"Bangladesh, on the other hand, is highly democratic - they vote on every single damn thing. What progress do they have? When one party gets power, they will override whatever progress/landmarks the previous party done. And viceversa."
Is it just me, or does this describe "stability" pretty plainly. "No progress" = Preservation of the status quo.
Posted by: Mike at Jun 21, 2007 10:21:32 AM
hard core statement on the Africans. While nominally true, it does not reflect the adverse conditions under which the people live (poor nutrition, poor sanitary conditions, malaria etc). If an enlightened African ruler could see further than 1 year down the road, improving the lower end people's lives would improve their IQ, their drive for success etc etc. The low IQ is not genetic but rather a result of poor environmental conditions.
Posted by: Murphy at Jun 27, 2007 11:00:32 AM
I come from asia, injoy 室內設計,work in a 搬家公司
Posted by: jarry at Jan 6, 2008 10:06:09 PM
Bvlgari Jewelry
Replica Bvlgari Jewelry
Bvlgari Replica Jewelry
Gucci Jewelry
Posted by: aion kina at Mar 19, 2009 9:13:37 PM
