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The transparency curse: Private information and political freedom

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  • Londregan, John B.

Abstract

I offer a model of the sustainability of authoritarian rule in which the transparency of productive economic activity enables the ruler to distinguish productive economic activity from preparations for rebellion. The less transparent the productive technology the greater the economic side effects of maintaining authoritarian rule, and the stronger the incentives to liberalize the regime. Using a cross section of countries I provide evidence that, consistently with the theory, democratic government Granger causes internet penetration.

Suggested Citation

  • Londregan, John B., 2015. "The transparency curse: Private information and political freedom," Research in Economics, Elsevier, vol. 69(3), pages 412-438.
    • Handle: RePEc:eee:reecon:v:69:y:2015:i:3:p:412-438
    DOI: 10.1016/j.rie.2015.04.002
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    References listed on IDEAS

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    Cited by:

    1. Gregorini, Filippo, 2015. "Political geography and income inequalities," Research in Economics, Elsevier, vol. 69(3), pages 439-452.
    2. Egorov, Georgy & Sonin, Konstantin, 2015. "The killing game: A theory of non-democratic succession," Research in Economics, Elsevier, vol. 69(3), pages 398-411.

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    More about this item

    Keywords

    Political economy; Transparency curse; Democracy; Dictatorship;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • P26 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Property Rights
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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