Recent empirical work has established that 'democracy causes growth'. In this paper, we determine the underlying … the market, endogenously form an 'economic blueprint for growth', which likely differs across countries. We take our model … institutions, as witnessed recently in many countries, may jeopardise the perpetual growth effect of becoming a liberal democracy …

Using a newly constructed panel dataset of German enterprises, I estimate R&D and capital investment equations for the … time period from 1990 to 1994. Simple accelerator specifications indicate considerable sensitivity of R&D and investment to … account, but a significant positive relationship between cash flow and investment remains for relatively small firms. In the …