DEMOCRACY AS INSURANCE

Explaining the existence and stability of democracies pose difficultie s for the Public Choice-paradigm, The article argues that these diffic ulties may be resolved by focusing on the insurance-aspect of democrat ic decision-making procedures. Democratic regimes may be better able t han autocratic regimes to provide the inhabitants with insurance again st the risk of being subjected to arbitrary suppression from the rulin g elite. This propensity of democratic regimes may explain the origin, as well as stability, of such regimes.