We focus on political violence as a mechanism that allows the political leader to fight off opposition and increase his chances of re-election. In a collusive equilibrium, the leader allocates a bribe to the army, and the latter responds by producing political violence. Such an equilibrium is more likely, the larger are the public resources available to the leader; the lower is army’s potential punishment and salary offered by the opposition regime; the more severe is the incumbent’s potential punishment; and when the political leader is sufficiently patient, but the army is shortsighted enough.
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Paper provided by University of Essex, Department of Economics in its series Economics Discussion Papers with number
652.
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Robinson, James A. & Torvik, Ragnar, 2005.
"White elephants,"
Journal of Public Economics,
Elsevier, vol. 89(2-3), pages 197-210, February.
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Craig Burnside & David Dollar, 2000.
"Aid, Policies, and Growth,"
American Economic Review,
American Economic Association, vol. 90(4), pages 847-868, September.
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