The Lipset Hypothesis in a Property Rights Perspective

  title={The Lipset Hypothesis in a Property Rights Perspective},
  author={P{\'a}l Czegl{\'e}di},
According to the so-called Lipset hypothesis, economic development – a growing income and a growing level of education – creates the “social requisites” for democratic institutions. This proposition receives much support in the contemporary economic literature. This paper addresses a question that seems to be unresolved in this literature: which institutions are shaped by economic development and which are not? The paper starts from a general notion of property rights and makes a distinction… CONTINUE READING