Replication data for: Mastering Panel Metrics: Causal Impact of Democracy on Growth

Principal Investigator(s): View help for Principal Investigator(s) Shuowen Chen; Victor Chernozhukov; Iván Fernández-Val

Version: View help for Version V1

Name	File Type	Size	Last Modified
Data-and-Programs			10/13/2019 01:37:AM
LICENSE.txt	text/plain	14.6 KB	10/12/2019 09:37:PM

Project Citation:

Chen, Shuowen, Chernozhukov, Victor, and Fernández-Val, Iván. Replication data for: Mastering Panel Metrics: Causal Impact of Democracy on Growth. Nashville, TN: American Economic Association [publisher], 2019. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-13. https://doi.org/10.3886/E114522V1

Project Description

Summary: We revisit the panel data analysis of Acemoglu et al. (forthcoming) on the relationship between democracy and economic growth using state-of-the-art econometric methods. We argue that panel data settings are high-dimensional, resulting in estimators to be biased to a degree that invalidates statistical inference. We remove these biases by using simple analytical and sample-splitting methods, and thereby restore valid statistical inference. We find that debiased fixed effects and Arellano-Bond estimators produce higher estimates of the long-run effect of democracy on growth, providing even stronger support for the key hypothesis of Acemoglu et al.

Scope of Project

JEL Classification:
      D72 Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
      C23 Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
      C33 Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models
      O43 Institutions and Growth

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Published Versions

V1 [2019-10-13]

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