DemocracyIncome

The Relation Between Democraty and Income

5-yearly observations of 211 countries from 1950 to 2000

number of observations : 2321

number of time-series : 11

country : world

JEL codes: D72, O47

Chapter : 02, 07

Usage

data(DemocracyIncome)

Format

A dataframe containing:

country

country

year

the starting year of the 5-years period

democracy

democracy index

income

the log of the gdp per capita

sample

a dummy variable to select the subset used in the original article

References

Daron Acemoglu, Simon Johnson, James A. Robinson and Pierre Yared (2008) “Income and Democracy”, American Economic Review, 98(3), 808-842, 10.1257/aer.98.3.808 .

Aliases

• DemocracyIncome

Examples

# NOT RUN {
#### Example 7-1

## ------------------------------------------------------------------------

data("DemocracyIncome", package = "pder")

## ------------------------------------------------------------------------
data("DemocracyIncome", package="pder")
set.seed(1)
di2000 <- subset(DemocracyIncome, year == 2000,
                 select = c("democracy", "income", "country"))
di2000 <- na.omit(di2000)
di2000$country <- as.character(di2000$country)
di2000$country[- c(2,5, 23, 16, 17, 22, 71,  125, 37, 43, 44,
                   79, 98, 105, 50, 120,  81, 129, 57, 58,99)] <- NA

library("ggplot2")
ggplot(di2000, aes(income, democracy, label = country)) + 
    geom_point(size = 0.4) + 
    geom_text(aes(y= democracy + sample(0.03 * c(-1, 1), 
                                        nrow(di2000), replace = TRUE)),
                  size = 2) +
    theme(legend.text = element_text(size = 6), 
          legend.title= element_text(size = 8),
          axis.title = element_text(size = 8),
          axis.text = element_text(size = 6))


## ------------------------------------------------------------------------
library("plm")
pdim(DemocracyIncome)
head(DemocracyIncome, 4)


#### Example 7-2

## ------------------------------------------------------------------------
mco <- plm(democracy ~ lag(democracy) + lag(income) + year - 1, 
           DemocracyIncome, index = c("country", "year"), 
           model = "pooling", subset = sample == 1)

## ------------------------------------------------------------------------
mco <- plm(democracy ~ lag(democracy) + lag(income), 
           DemocracyIncome, index = c("country", "year"), 
           model = "within", effect = "time",
           subset = sample == 1)
coef(summary(mco))


#### Example 7-3

## ------------------------------------------------------------------------
within <- update(mco, effect = "twoways")
coef(summary(within))


#### Example 7-4

## ------------------------------------------------------------------------
ahsiao <- plm(diff(democracy) ~ lag(diff(democracy)) + 
              lag(diff(income)) + year - 1  | 
              lag(democracy, 2) + lag(income, 2) + year - 1, 
              DemocracyIncome, index = c("country", "year"),
              model = "pooling", subset = sample == 1)
coef(summary(ahsiao))[1:2, ]


#### Example 7-5

## ------------------------------------------------------------------------
diff1 <- pgmm(democracy ~ lag(democracy) + lag(income) | 
              lag(democracy, 2:99)| lag(income, 2),
              DemocracyIncome, index=c("country", "year"), 
              model="onestep", effect="twoways", subset = sample == 1)
coef(summary(diff1))

## ------------------------------------------------------------------------
diff2 <- update(diff1, model = "twosteps")
coef(summary(diff2))


#### Example 7-7

## ------------------------------------------------------------------------
sys2 <- pgmm(democracy ~ lag(democracy) + lag(income) | 
             lag(democracy, 2:99)| lag(income, 2),
             DemocracyIncome, index = c("country", "year"), 
             model = "twosteps", effect = "twoways",
             transformation = "ld")
coef(summary(sys2))


#### Example 7-8

## ------------------------------------------------------------------------
sqrt(diag(vcov(diff2)))[1:2]
sqrt(diag(vcovHC(diff2)))[1:2]


#### Example 7-10

## ------------------------------------------------------------------------
mtest(diff2, order = 2)


#### Example 7-9

## ------------------------------------------------------------------------
sargan(diff2)
sargan(sys2)
# }