Elites, Education and Reforms
AbstractWe analyze the interplay of political elites’ de facto power, democracy and education based on a theoretical framework inspired by the model in Acemoglu and Robinson (2006). We identify conditions under which the elite may overcompensate the loss of de jure power (as a result of political reform) by investing too much in de facto power so that the probability to have de facto power is higher under democracy than under non-democracy. The analysis also shows that depending on whether the income effect of education is strong or weak and whether citizens’ education has increasing or decreasing returns, the elite may or may not support education subsidy under democracy. We show that under certain assumptions the political elites may treat democracy and spending on citizens’ education as substitutes. We comment on the implications of the results for understanding why countries that started from comparable initial conditions may follow divergent development paths.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by ICER - International Centre for Economic Research in its series ICER Working Papers with number 18-2009.
Length: 27 pages
Date of creation: Jul 2009
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-08-08 (All new papers)
- NEP-HRM-2009-08-08 (Human Capital & Human Resource Management)
- NEP-LAB-2009-08-08 (Labour Economics)
- NEP-POL-2009-08-08 (Positive Political Economics)
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.:
- Daron Acemoglu & Simon Johnson & James A. Robinson & Pierre Yared, 2005.
"From Education to Democracy?,"
American Economic Review,
American Economic Association, vol. 95(2), pages 44-49, May.
- Mikael Lindahl & Alan B. Krueger, 2001.
"Education for Growth: Why and for Whom?,"
Journal of Economic Literature,
American Economic Association, vol. 39(4), pages 1101-1136, December.
- Alan B. Krueger & Mikael Lindahl, 2000. "Education for Growth: Why and For Whom?," NBER Working Papers 7591, National Bureau of Economic Research, Inc.
- Alan Krueger & Mikael Lindahl, 2000. "Education for Growth: Why and For Whom?," Working Papers 808, Princeton University, Department of Economics, Industrial Relations Section..
- Romer, Paul M, 1986.
"Increasing Returns and Long-run Growth,"
Journal of Political Economy,
University of Chicago Press, vol. 94(5), pages 1002-37, October.
- Mina Baliamoune-Lutz, 2009. "Human Well-Being Effects Of Institutions And Social Capital," Contemporary Economic Policy, Western Economic Association International, vol. 27(1), pages 54-66, 01.
- Baliamoune-Lutz, Mina, 2009. "Tunisia's Development Experience: A Success Story?," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Oded Galor & Joseph Zeira, 2013.
"Income Distribution and Macroeconomics,"
2013-12, Brown University, Department of Economics.
- Barro, Robert J, 1996. " Democracy and Growth," Journal of Economic Growth, Springer, vol. 1(1), pages 1-27, March.
- Easterly, William, 2000.
"the middle class consensus and economic development,"
Policy Research Working Paper Series
2346, The World Bank.
- Easterly, William, 2001. " The Middle Class Consensus and Economic Development," Journal of Economic Growth, Springer, vol. 6(4), pages 317-35, December.
- FOSU, Augustin Kwasi, 2008. "Democracy and growth in Africa: Implications of increasing electoral competitiveness," Economics Letters, Elsevier, vol. 100(3), pages 442-444, September.
- Galiani, Sebastian & Heymann, Daniel & Dabús, Carlos & Tohmé, Fernando, 2008. "On the emergence of public education in land-rich economies," Journal of Development Economics, Elsevier, vol. 86(2), pages 434-446, June.
- Daron Acemoglu & James A. Robinson, 2006. "De Facto Political Power and Institutional Persistence," American Economic Review, American Economic Association, vol. 96(2), pages 325-330, May.
- Barro, Robert J., 1999.
"Determinants of Democracy,"
3451297, Harvard University Department of Economics.
- Daron Acemoglu & Simon Johnson & James Robinson & Pierre Yared, 2005.
"Income and Democracy,"
NBER Working Papers
11205, National Bureau of Economic Research, Inc.
- Minier, Jenny A, 1998. " Democracy and Growth: Alternative Approaches," Journal of Economic Growth, Springer, vol. 3(3), pages 241-66, September.
- Collier, Paul & Hoeffler, Anke, 2009. "Testing the neocon agenda: Democracy in resource-rich societies," European Economic Review, Elsevier, vol. 53(3), pages 293-308, April.
- Mincer, Jacob, 1996. " Economic Development, Growth of Human Capital, and the Dynamics of the Wage Structure," Journal of Economic Growth, Springer, vol. 1(1), pages 29-48, March.
- Barro, Robert J, 1991.
"Economic Growth in a Cross Section of Countries,"
The Quarterly Journal of Economics,
MIT Press, vol. 106(2), pages 407-43, May.
- Barro, R.J., 1989. "Economic Growth In A Cross Section Of Countries," RCER Working Papers 201, University of Rochester - Center for Economic Research (RCER).
- Robert J. Barro, 1989. "Economic Growth in a Cross Section of Countries," NBER Working Papers 3120, National Bureau of Economic Research, Inc.
- Edward Glaeser & Giacomo Ponzetto & Andrei Shleifer, 2006.
"Why Does Democracy Need Education?,"
NBER Working Papers
12128, National Bureau of Economic Research, Inc.
- Addison, Tony & Baliamoune-Lutz, Mina, 2006.
"Economic reform when institutional quality is weak: The case of the Maghreb,"
Journal of Policy Modeling,
Elsevier, vol. 28(9), pages 1029-1043, December.
- Baliamoune-Lutz, Mina & Addison, Tony, 2007. "Economic reform when institutional quality is weak: The case of the Maghreb," Journal of Policy Modeling, Elsevier, vol. 29(1), pages 65-79.
- Durham, J Benson, 1999. " Economic Growth and Political Regimes," Journal of Economic Growth, Springer, vol. 4(1), pages 81-111, March.
- Perotti, Roberto, 1996. " Growth, Income Distribution, and Democracy: What the Data Say," Journal of Economic Growth, Springer, vol. 1(2), pages 149-87, June.
- Adam Przeworski & Fernando Limongi, 1993. "Political Regimes and Economic Growth," Journal of Economic Perspectives, American Economic Association, vol. 7(3), pages 51-69, Summer.
- Benhabib, Jess & Spiegel, Mark M., 1994. "The role of human capital in economic development evidence from aggregate cross-country data," Journal of Monetary Economics, Elsevier, vol. 34(2), pages 143-173, October.
- Bourguignon, Francois & Verdier, Thierry, 2000.
"Oligarchy, democracy, inequality and growth,"
Journal of Development Economics,
Elsevier, vol. 62(2), pages 285-313, August.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alessandra Calosso).
If references are entirely missing, you can add them using this form.