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Democracy as an equilibrium

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Author Info
Adam Przeworski ()
Abstract

Observation shows that while democracy is fragile in poor countries, it is impregnable in developed ones. To explain this pattern, I develop a model in which political parties propose redistributions of incomes, observe the result of an election, and decide whether to comply with the outcome or to launch a struggle for dictatorship. Democracy prevails in developed societies because too much is at stake in turning against it. More income can be redistributed in developed than in poor countries without threatening democracy. Limits on redistribution arise endogenously, so that constitutions are not necessary for democracy to endure. A democratic culture characterizes the equilibrium. Copyright Springer Science + Business Media, Inc. 2005

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Article provided by Springer in its journal Public Choice.

Volume (Year): 123 (2005)
Issue (Month): 3 (June)
Pages: 253-273
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Handle: RePEc:kap:pubcho:v:123:y:2005:i:3:p:253-273

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  1. Roland Benabou, 2000. "Unequal Societies: Income Distribution and the Social Contract," American Economic Review, American Economic Association, vol. 90(1), pages 96-129, March. [Downloadable!] (restricted)
  2. Benhabib, Jess & Rustichini, Aldo, 1996. " Social Conflict and Growth," Journal of Economic Growth, Springer, vol. 1(1), pages 125-42, March.
  3. Dani Rodrik, 1998. "Democracies Pay Higher Wages," NBER Working Papers 6364, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. Avinash Dixit & Gene M. Grossman & Faruk Gul, 2000. "The Dynamics of Political Compromise," Journal of Political Economy, University of Chicago Press, vol. 108(3), pages 531-568, June. [Downloadable!] (restricted)
  5. Daron Acemoglu & James A. Robinson, 2001. "A Theory of Political Transitions," American Economic Review, American Economic Association, vol. 91(4), pages 938-963, September. [Downloadable!] (restricted)
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  6. Matthew Ellman & Leonard Wantchekon, 2000. "Electoral Competition Under The Threat Of Political Unrest," The Quarterly Journal of Economics, MIT Press, vol. 115(2), pages 499-531, May. [Downloadable!] (restricted)
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  7. Alesina, Alberto, 1988. "Credibility and Policy Convergence in a Two-Party System with Rational Voters," American Economic Review, American Economic Association, vol. 78(4), pages 796-805, September.
  8. Deininger, Klaus & Squire, Lyn, 1996. "A New Data Set Measuring Income Inequality," World Bank Economic Review, Oxford University Press, vol. 10(3), pages 565-91, September.
  9. John F. Helliwell, 1994. "Empirical Linkages Between Democracy and Economic Growth," NBER Working Papers 4066, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  10. Kornhauser, Lewis A, 1999. "The Normativity of Law," American Law and Economics Review, Oxford University Press, vol. 1(1-2), pages 3-25, Fall.
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  1. Brückner, Markus & Ciccone, Antonio, 2008. "Rain and the Democratic Window of Opportunity," CEPR Discussion Papers 6691, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  2. Kevin Morrison, 2007. "Natural resources, aid, and democratization: A best-case scenario," Public Choice, Springer, vol. 131(3), pages 365-386, June. [Downloadable!] (restricted)
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