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The Injustice of Inequality Author info | Abstract | Publisher info | Download info | Related research | Statistics Edward L. Glaeser
Jose Scheinkman
Andrei Shleifer
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In many countries, the operation of legal, political and regulatory institutions is subverted by the wealthy and the politically powerful for their own benefit. This subversion takes the form of corruption, intimidation, and other forms of influence. We present a model of such institutional subversion – focusing specifically on courts – and of the effects of inequality in economic and political resources on the magnitude of subversion. We then use the model to analyze the consequences of institutional subversion for the law and order environment in the country, as well as for capital accumulation and growth. We illustrate the model with historical evidence from Gilded Age United States and the transition economies of the 1990s. We also present some cross-country evidence consistent with the basic prediction of the model.
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Paper provided by Harvard - Institute of Economic Research in its series Harvard Institute of Economic Research Working Papers with number
1967.
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Date of creation: 2002Date of revision:
Handle: RePEc:fth:harver:1967Contact details of provider: Postal: 200 Littauer Center, Cambridge, MA 02138 Web page: http://www.economics.harvard.edu/journals/hier More information through EDIRC
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Edward L. Glaeser & Andrei Shleifer, 2002.
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"The Rise of the Regulatory State ,"
Journal of Economic Literature ,
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