DemocracyIncome
From pder v1.0-1
by Yves Croissant
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
- Keywords
- datasets
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 .
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)
# }
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