... a result, there are ever-more demands on the resources of thestate. Moreover, because the democratic state reflects, at least to some degree, thepolitical make-up of its constituents, there ... there are more voices represented ingovernment, leading to political sclerosis. The result is decreased governmentalefficiency and, therefore, decreased economic performance (see also Bell, 1976;Brittan, ... hasbeneficial effects for an economy. We disagree, and while this disagreement issomewhat intuitive, some of our findings are unexpected and shed new light onthe connection between democracy and...