Economic conditions shape election outcomes in the world's democracies. Good times keep parties in office, bad times cast them out. This proposition is robust, as the voluminous body of research reviewed here demonstrates. The strong findings at the macro level are founded on the economic voter, who holds the government responsible for economic performance, rewarding or punishing it at the ballot box. Although voters do not look exclusively at economic issues, they generally weigh those more heavily than any others, regardless of the democracy they vote in.

Research begins with a "problem" or topic. Thinking about the problem results in identifying concepts that capture the phenomenon being studied. Concepts, or CONSTRUCTS, are ideas that represent the phenomenon. Conceptualization is the process whereby these concepts are given theoretical meaning. The process typically involves defining the concepts abstractly in theoretical terms.

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In comparative politics, an established finding—that economic development fosters democratic performance—has recently come under challenge. We counter this challenge with a dynamic pooled time series analysis of a major, but neglected data set from 131 nations. The final generalized least squares-autoregressive moving averages estimates (N = 2,096) appear robust and indicate strong economic development effects, dependent in part on the nation's position in the world system. For the first time, rather hard evidence is offered on the causal relationship between economics and democracy. According to Granger tests, economic development “causes” democracy, but democracy does not “cause” economic development. Overall, the various tests would seem to advance sharply the modeling of democratic performance.

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