Economic growth and institutional reform in modern monarchies and republics: A historical cross-country perspective 1820-2000

TY - JOUR

T1 - Economic growth and institutional reform in modern monarchies and republics

T2 - A historical cross-country perspective 1820-2000

AU - Bjørnskov, Christian

AU - Kurrild-Klitgaard, Peter

PY - 2014

Y1 - 2014

N2 - Conventional arguments suggest that republics ought to grow faster than monarchies and experience lower transitional costs following reforms. We employ a panel of 27 countries observed from 1820 to 2000 to estimate these differences. Results show no significant growth differences between the two regime types. Effects of incremental reforms do not differ between them, but those of large-scale reforms do. Specifically, we find a strong valley-of-tears effect of large reforms in republics, and monarchies benefit from such reforms in the ten-year perspective adopted here. We offer some tentative thoughts on the underlying mechanisms responsible for the results.

AB - Conventional arguments suggest that republics ought to grow faster than monarchies and experience lower transitional costs following reforms. We employ a panel of 27 countries observed from 1820 to 2000 to estimate these differences. Results show no significant growth differences between the two regime types. Effects of incremental reforms do not differ between them, but those of large-scale reforms do. Specifically, we find a strong valley-of-tears effect of large reforms in republics, and monarchies benefit from such reforms in the ten-year perspective adopted here. We offer some tentative thoughts on the underlying mechanisms responsible for the results.

U2 - 10.1628/093245614X13946249258832

DO - 10.1628/093245614X13946249258832

M3 - Journal article

SN - 0932-4569

VL - 170

SP - 453

EP - 481

JO - Journal of Institutional and Theoretical Economics

JF - Journal of Institutional and Theoretical Economics

IS - 3

ER -