2009
DOI: 10.2139/ssrn.1406931
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The Agricultural and the Democratic Transitions Causality and the Roundup Model

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Cited by 4 publications
(3 citation statements)
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“…In their critique of Acemoglu et al (2008), Gundlach and Paldam (2009) suggest that the inclusion of time and country fixed effects purged useful information in panel data estimation, thereby predisposing them to fail in their search for a relationship between income and democracy. Their argument highlights an important methodological dilemma: including country-specific fixed effects eliminates useful informative variation from the data, but excluding them introduces omitted variable bias.…”
Section: Methods and Datamentioning
confidence: 99%
See 1 more Smart Citation
“…In their critique of Acemoglu et al (2008), Gundlach and Paldam (2009) suggest that the inclusion of time and country fixed effects purged useful information in panel data estimation, thereby predisposing them to fail in their search for a relationship between income and democracy. Their argument highlights an important methodological dilemma: including country-specific fixed effects eliminates useful informative variation from the data, but excluding them introduces omitted variable bias.…”
Section: Methods and Datamentioning
confidence: 99%
“…A result of these divergent processes is that some countries end up democratic and rich while others remain autocratic and poor. While this appears plausible, their interpretation may rest on weak foundations: Gundlach and Paldam (2009) argue that Acemoglu et al (2008) find no relationship between democracy and income owing to the statistical methods they apply.…”
Section: Introductionmentioning
confidence: 99%
“…The equivalence of the long-run and the cross-country pattern cannot be formally tested in our case as the CSscores are only available for 1½ decades. However, the equivalence holds for similar cases where data are available (see Gundlach and Paldam 2009b) so it is taken as the default.…”
Section: One Part Of a Complex Causal Structurementioning
confidence: 99%