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The Rise and Fall of Elites: A Theory of Economic Development and Social Polarization in Rent-Seeking Societies

Author

Listed:
  • Ades, A.
  • Verdier, T.

Abstract

This paper analyzes how political institutions, wealth distribution and economic activities affect each other during the process of development. A simple general equilibrium model of rent-seeking political elites with two productive sectors (modern and traditional) is presented.

Suggested Citation

  • Ades, A. & Verdier, T., 1996. "The Rise and Fall of Elites: A Theory of Economic Development and Social Polarization in Rent-Seeking Societies," DELTA Working Papers 96-13, DELTA (Ecole normale supérieure).
  • Handle: RePEc:del:abcdef:96-13
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    Cited by:

    1. Christophe Ehrhart, 2009. "The effects of inequality on growth: a survey of the theoretical and empirical literature," Working Papers 107, ECINEQ, Society for the Study of Economic Inequality.
    2. Roland Benabou, 2000. "Unequal Societies: Income Distribution and the Social Contract," American Economic Review, American Economic Association, vol. 90(1), pages 96-129, March.
    3. Arthur Silve & Thierry Verdier & Thierry Verdier, 2023. "The Dynastic Transmission of Power, Exit Options and the Coevolution of Rent-Seeking Elites," CESifo Working Paper Series 10410, CESifo.
    4. Daron Acemoglu & James A. Robinson, 2001. "A Theory of Political Transitions," American Economic Review, American Economic Association, vol. 91(4), pages 938-963, September.
    5. Shankha Chakraborty & Era Dabla-Norris, 2006. "Rent Seeking," IMF Staff Papers, Palgrave Macmillan, vol. 53(1), pages 1-2.
    6. Joan Esteban & Debraj Ray, 2006. "Inequality, Lobbying, and Resource Allocation," American Economic Review, American Economic Association, vol. 96(1), pages 257-279, March.
    7. Maria Cubel, 2010. "Fiscal equalization and political conflict," Working Papers 2010/9, Institut d'Economia de Barcelona (IEB).
    8. Graziella Bertocchi & Arcangelo Dimico, 2017. "De jure and de facto determinants of power: evidence from Mississippi," Constitutional Political Economy, Springer, vol. 28(4), pages 321-345, December.
    9. Bertocchi, Graziella & Dimico, Arcangelo, 2011. "Race v. Suffrage: The Determinants of Development in Mississippi," IZA Discussion Papers 6017, Institute of Labor Economics (IZA).
    10. Josten, Stefan Dietrich & Truger, Achim, 2003. "The political economy of growth and distribution: A theoretical critique," WSI Working Papers 111, The Institute of Economic and Social Research (WSI), Hans Böckler Foundation.
    11. Boschini, Anne D., 2006. "The political economy of industrialisation," European Journal of Political Economy, Elsevier, vol. 22(4), pages 887-907, December.
    12. Daniel Leonard & Ngo Van Long, 2012. "Endogenous Changes in Property Rights Regime," The Economic Record, The Economic Society of Australia, vol. 88(280), pages 79-88, March.
    13. Joan Esteban & Debraj Ray, 2003. "Inequality and Public Resource Allocation," Working Papers 47, Barcelona School of Economics.
    14. Philip Nel, 2006. "When Can the Rabble Redistribute? Democratization and Income Distribution in Low- and Middle-income Countries," Working Papers 43, ECINEQ, Society for the Study of Economic Inequality.
    15. Maria Cubel, 2010. "Fiscal equalization and political conflict," Working Papers 2010/9, Institut d'Economia de Barcelona (IEB).
    16. repec:mod:depeco:0001 is not listed on IDEAS

    More about this item

    Keywords

    ECONOMIC DEVELOPMENT; POLITICAL ECONOMY; POLITICS; GENERAL EQUILIBRIUM;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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