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Political Rents in a Non-Corrupt Democracy

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  • Svaleryd, Helena

    ()
    (Research Institute of Industrial Economics)

  • Vlachos, Jonas

    ()
    (Stockholm University)

Abstract

A fundamental problem in all political systems is that the people in power may extract rents to the detriment of the general public. In a democracy, electoral competition and information provided by the media may keep such rent extraction at bay. We develop a simple model where rents are decreasing in the degree of political competition and voter information. In line with our theoretical predictions, we find that both increased political competition and increased local media coverage substantially reduce direct measures of legal political rents among local governments in a non-corrupt democracy (Sweden).

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Bibliographic Info

Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 698.

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Length: 57 pages
Date of creation: 16 Feb 2007
Date of revision: 26 Mar 2008
Publication status: Published as Svaleryd, Helena and Jonas Vlachos, 'Political Rents in a Non-Corrupt Democracy' in Journal of Public Economics, 2009, pages 355-372.
Handle: RePEc:hhs:iuiwop:0698

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Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
Phone: +46 8 665 4500
Fax: +46 8 665 4599
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Web page: http://www.ifn.se/
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Keywords: Accountability; Political Competition; Media; Political Rents;

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References

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Citations

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Cited by:
  1. Bernecker, Andreas, 2013. "Do Politicians Shirk when Reelection Is Certain? Evidence from the German Parliament," Working Papers 13-09, University of Mannheim, Department of Economics.
  2. Jon H. Fiva & Gisle James Natvik, 2009. "Do Re-election Probabilities Influence Public Investment?," CESifo Working Paper Series 2709, CESifo Group Munich.
  3. Liang, Che-Yuan, 2007. "Is There an Incumbency Advantage or a Cost of Ruling in Proportional Election Systems?," Working Paper Series 2007:28, Uppsala University, Department of Economics.
  4. J. Stephen Ferris, 2010. "Fiscal Policy from a Public Choice Perspective," Carleton Economic Papers 10-10, Carleton University, Department of Economics.
  5. Albert Solé-Ollé & Elisabet Viladecans-Marsal, 2010. "Lobbying, political competition, and local land supply: recent evidence from Spain," Working Papers 2010/45, Institut d'Economia de Barcelona (IEB).
  6. Folke, Olle & Rickne, Johanna, 2012. "Female Representation but Male Rule? Party Competition and the Political Glass Ceiling," Working Paper Series 923, Research Institute of Industrial Economics.
  7. Elena Costas & Albert Sole-Olle & Pilar Sorribas-Navarro, 2011. "Corruption scandals, press reporting, and accountability. Evidence from Spanish mayors," Working Papers in Economics 255, Universitat de Barcelona. Espai de Recerca en Economia.
  8. Folke, Olle & Persson, Torsten & Rickne, Johanna, 2014. "Preferential Voting, Accountability and Promotions into Political Power: Evidence from Sweden," Working Paper Series 1002, Research Institute of Industrial Economics.
  9. Costas-Pérez, Elena & Solé-Ollé, Albert & Sorribas-Navarro, Pilar, 2012. "Corruption scandals, voter information, and accountability," European Journal of Political Economy, Elsevier, vol. 28(4), pages 469-484.
  10. Marcus Drometer, 2012. "Bureaucrats and short-term politics," Public Choice, Springer, vol. 151(1), pages 149-163, April.

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