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Political Capitalism

Author

Listed:
  • Randall G. Holcombe

Abstract

Problems associated with cronyism, corporatism, and policies that favor the elite over the masses have received increasing attention in recent years. Political Capitalism explains that what people often view as the result of corruption and unethical behavior are symptoms of a distinct system of political economy. The symptoms of political capitalism are often viewed as the result of government intervention in a market economy, or as attributes of a capitalist economy itself. Randall G. Holcombe combines well-established theories in economics and the social sciences to show that political capitalism is not a mixed economy, or government intervention in a market economy, or some intermediate step between capitalism and socialism. After developing the economic theory of political capitalism, Holcombe goes on to explain how changes in political ideology have facilitated the growth of political capitalism, and what can be done to redirect public policy back toward the public interest.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Randall G. Holcombe, 2015. "Political Capitalism," Cato Journal, Cato Journal, Cato Institute, vol. 35(1), pages 41-66, Winter.
    • Handle: RePEc:cto:journl:v:35:y:2015:i:1:p:41-66
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    References listed on IDEAS

    as
    1. Krueger, Anne O, 1974. "The Political Economy of the Rent-Seeking Society," American Economic Review, American Economic Association, vol. 64(3), pages 291-303, June.
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    Citations

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    Cited by:

    1. Farzanegan, Mohammad Reza & Krieger, Tim, 2017. "The response of income inequality to positive oil rents shocks in Iran: Implications for the post-sanction period," Discussion Paper Series 2017-04, University of Freiburg, Wilfried Guth Endowed Chair for Constitutional Political Economy and Competition Policy.
    2. Mehrdad Vahabi, 2024. "Islamic revolution and Anfal," Public Choice, Springer, vol. 200(3), pages 383-401, September.
    3. Gabriel F. Benzecry & Daniel J. Smith, 2024. "The wisdom of classical political economy in economics: incorporated or lost?," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 37(2), pages 133-152, June.
    4. Byrne, Conor & Oostdijk, Maartje & Agnarsson, Sveinn & Davidsdottir, Brynhildur, 2024. "The Transitional Gains Trap in Grandfathered Individual Transferable Quota Fisheries," Ecological Economics, Elsevier, vol. 215(C).
    5. J. Zachary Klingensmith, 2019. "Political Entrepreneurs and Pork-Barrel Spending," Economies, MDPI, vol. 7(1), pages 1-17, February.
    6. Rosolino A. Candela & Vincent J. Geloso, 2021. "Trade or raid: Acadian settlers and native Americans before 1755," Public Choice, Springer, vol. 188(3), pages 549-575, September.
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    8. G. P. Manish & Colin O’Reilly, 2019. "Banking regulation, regulatory capture and inequality," Public Choice, Springer, vol. 180(1), pages 145-164, July.
    9. Kim Leonie Kellermann, 2022. "Political inequality, political participation, and support for populist parties," Constitutional Political Economy, Springer, vol. 33(4), pages 461-482, December.
    10. Gabriel F. Benzecry & Nicholas A. Reinarts & Daniel J. Smith, 2025. "You have nothing to lose but your chains?," Public Choice, Springer, vol. 202(3), pages 529-556, March.
    11. Mohammad Reza Farzanegan & Tim Krieger, 2018. "Oil Revenues Shocks and Inequality in Iran," Working Papers 1226, Economic Research Forum, revised 18 Sep 2018.
    12. Randall G. Holcombe, 2017. "Political incentives for rent creation," Constitutional Political Economy, Springer, vol. 28(1), pages 62-78, March.
    13. Krieger, Tim & Meierrieks, Daniel, 2016. "Political capitalism: The interaction between income inequality, economic freedom and democracy," European Journal of Political Economy, Elsevier, vol. 45(C), pages 115-132.
    14. Mohammad Reza Farzanegan & Tim Krieger, 2018. "Oil Rents Shocks and Inequality in Iran," CESifo Working Paper Series 6876, CESifo.

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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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