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Democracy does not cause growth | Brookings Institution
64-page paper
Democracy & Growth: http://www.nber.org/papers/w4909
The favorable effects on growth include maintenance of the rule of law, free markets, small government consumption, and high human capital. Once these kinds of variables and the initial level of real per-capita GDP are held constant, the overall effect of democracy on growth is weakly negative. There is a suggestion of a nonlinear relationship in which democracy enhances growth at low levels of political freedom but depresses growth when a moderate level of freedom has already been attained.

The growth effect of democracy: Is it heterogenous and how can it be estimated∗: http://perseus.iies.su.se/~tpers/papers/cifar_paper_may16_07.pdf
In particular, we find an average negative effect on growth of leaving democracy on the order of −2 percentage points implying effects on income per capita as large as 45 percent over the 1960-2000 panel. Heterogenous characteristics of reforming and non-reforming countries appear to play an important role in driving these results.

Does democracy cause innovation? An empirical test of the popper hypothesis: http://www.sciencedirect.com.sci-hub.cc/science/article/pii/S0048733317300975
The results from the difference-in-differences method show that democracy itself has no direct positive effect on innovation measured with patent counts, patent citations and patent originality.

Benevolent Autocrats: https://williameasterly.files.wordpress.com/2011/09/benevolent-autocrats-easterly-draft.pdf
A large literature attributes this to the higher variance of growth rates under autocracy than under democracy. The literature offers alternative explanations for this stylized fact: (1) leaders don’t matter under democracy, but good and bad leaders under autocracy cause high and low growth, (2) leaders don’t matter under autocracy either, but good and bad autocratic systems cause greater extremes of high and low growth, or (3) democracy does better than autocracy at reducing variance from shocks from outside the political system. This paper details further the stylized facts to test these distinctions. Inconsistent with (1), the variance of growth within the terms of leaders swamps the variance across leaders, and more so under autocracy than under democracy. Country effects under autocracy are also overwhelmed by within-country variance, inconsistent with (2). Explanation (3) fits the stylized facts the best of the three alternatives.

Political Institutions, Size of Government and Redistribution: An empirical investigation: http://www.lse.ac.uk/internationalDevelopment/pdf/WP/WP89.pdf
Results show that the stronger democratic institutions are, the lower is government size and the higher the redistributional capacity of the state. Political competition exercises the strongest and most robust effect on the two variables.

Fits the high-variance theory of autocracies:
More miracles, more disasters. And there's a lot of demand for miracles.

Measuring the ups and downs of governance: https://www.brookings.edu/blog/future-development/2017/09/22/measuring-the-ups-and-downs-of-governance/
Figure 2: Voice and Accountability and Government Effectiveness, 2016
Georgia, Japan, Rwanda, and Serbia ↑ Gov Effectiveness; Indonesia, Tunisia, Liberia, Serbia, and Nigeria ↑ Voice and Accountability.

The logic of hereditary rule: theory and evidence: http://eprints.lse.ac.uk/69615/
Hereditary leadership has been an important feature of the political landscape throughout history. This paper argues that hereditary leadership is like a relational contract which improves policy incentives. We assemble a unique dataset on leaders between 1874 and 2004 in which we classify them as hereditary leaders based on their family history. The core empirical finding is that economic growth is higher in polities with hereditary leaders but only if executive constraints are weak. Moreover, this holds across of a range of specifications. The finding is also mirrored in policy outcomes which affect growth. In addition, we find that hereditary leadership is more likely to come to an end when the growth performance under the incumbent leader is poor.

I noted this when the paper was a working paper, but non-hereditary polities with strong contraints have higher growth rates.
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september 2016 by nhaliday

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