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Land and Power

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  • Baland, Jean-Marie
  • Robinson, James A

Abstract

We study the implications of electoral corruption for resource allocation, factor market equilibrium and inequality. We focus on the control of the voting of agricultural workers by landlords and show that if the employment relationship is subject to moral hazard then the resulting rents conceded by employers give them a comparative advantage in controlling the political activities of their workers. This generates an added incentive to own land and leads to inefficiently high land concentration. We test the predictions of the model by examining in detail the effects of the introduction of the secret ballot in Chile in 1958.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3800.

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Date of creation: Feb 2003
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Handle: RePEc:cpr:ceprdp:3800

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Keywords: employment; inequality; land; productivity;

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References

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  1. Abhijit V. Banerjee & Andrew F. Newman, 1990. "Occupational Choice and the Process of Development," Discussion Papers 911, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  2. James M. Snyder, 1991. "On Buying Legislatures," Economics and Politics, Wiley Blackwell, vol. 3(2), pages 93-109, 07.
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  4. Bardhan, Pranab & Bowles, Samuel & Gintis, Herbert, 2000. "Wealth inequality, wealth constraints and economic performance," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 10, pages 541-603 Elsevier.
  5. Grossman, Gene M & Helpman, Elhanan, 1996. "Electoral Competition and Special Interest Politics," Review of Economic Studies, Wiley Blackwell, vol. 63(2), pages 265-86, April.
  6. Binswanger, Hans P. & Deininger, Klaus & Feder, Gershon, 1995. "Power, distortions, revolt and reform in agricultural land relations," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 42, pages 2659-2772 Elsevier.
  7. Patrick Legros & Andrew Newman, 1996. "Wealth effects, distribution, and the theory of organization," ULB Institutional Repository 2013/7036, ULB -- Universite Libre de Bruxelles.
  8. Daron Acemoglu & James Robinson, 1999. "A Theory of Political Transitions," Working papers 99-26, Massachusetts Institute of Technology (MIT), Department of Economics.
  9. Torsten Persson & Guido Tabellini, 2005. "The Economic Effects of Constitutions," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262661926, December.
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  11. Sadoulet, Elisabeth, 1992. "Labor-Service Tenancy Contracts in a Latin American Context," American Economic Review, American Economic Association, vol. 82(4), pages 1031-42, September.
  12. Dilip Mookherjee, 1995. "Informational Rents and Property Rights in Land," Boston University - Institute for Economic Development 55, Boston University, Institute for Economic Development.
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Cited by:
  1. Jonathan H. Conning & James A. Robinson, 2001. "Land Reform and the Political Organization of Agriculture," Department of Economics Working Papers 2001-10, Department of Economics, Williams College.
  2. Jonathan H. Conning, 2002. "Latifundia Economics," Department of Economics Working Papers 2001-08, Department of Economics, Williams College.

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