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Vote-Buying And Growth

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  • Gersbach, Hans
  • Mühe, Felix

Abstract

Vote-buying is widely used by parties in developing countries to influence the outcome of elections. We examine the impact of vote-buying on growth. We consider a model with a poverty trap where redistribution can promote growth. We show that vote-buying contributes to the persistence of poverty as taxed wealthy people buy votes from poor people. We then show that there exists a democratic constitution that breaks vote-buying and promotes growth. Such a constitution involves rotating agenda setting, a taxpayer-protection rule, and repeated voting. The latter rule makes vote-buying prohibitively costly.

Suggested Citation

  • Gersbach, Hans & Mühe, Felix, 2011. "Vote-Buying And Growth," Macroeconomic Dynamics, Cambridge University Press, vol. 15(05), pages 656-680, November.
  • Handle: RePEc:cup:macdyn:v:15:y:2011:i:05:p:656-680_00
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    References listed on IDEAS

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    1. Docquier, Frederic & Tarbalouti, Essaid, 2001. "Bribing Votes: A New Explanation to the "Inequality-Redistribution" Puzzle in LDCs," Public Choice, Springer, vol. 108(3-4), pages 259-272, September.
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    4. Philippe Aghion & Alberto Alesina & Francesco Trebbi, 2004. "Endogenous Political Institutions," The Quarterly Journal of Economics, Oxford University Press, vol. 119(2), pages 565-611.
    5. Oded Galor & Joseph Zeira, 1993. "Income Distribution and Macroeconomics," Review of Economic Studies, Oxford University Press, vol. 60(1), pages 35-52.
    6. Eddie Dekel & Matthew O. Jackson & Asher Wolinsky, 2008. "Vote Buying: General Elections," Journal of Political Economy, University of Chicago Press, vol. 116(2), pages 351-380, April.
    7. Azariadis, Costas, 1996. "The Economics of Poverty Traps: Part One: Complete Markets," Journal of Economic Growth, Springer, vol. 1(4), pages 449-496, December.
    8. Dennis Mueller & Robert Tollison & Thomas Willett, 1972. "Representative democracy via random selection," Public Choice, Springer, vol. 12(1), pages 57-68, March.
    9. Hans Gersbach, 2004. "Dividing resources by flexible majority rules," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 23(2), pages 295-308, October.
    10. Barro, Robert J, 2000. "Inequality and Growth in a Panel of Countries," Journal of Economic Growth, Springer, vol. 5(1), pages 5-32, March.
    11. repec:cup:apsrev:v:90:y:1996:i:02:p:303-315_20 is not listed on IDEAS
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    Citations

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    Cited by:

    1. Cendales, Andrés & Mora, Jhon & Arroyo, Santiago, 2015. "Sobre las democracias locales en el Pacífico colombiano y su incidencia en la política pública de agua potable en el periodo 2008-2011," REVISTA LECTURAS DE ECONOMÍA, UNIVERSIDAD DE ANTIOQUIA - CIE, issue 83, pages 161-192, February.
    2. Chyi-Lu Jang & Chun-Ping Chang, 2016. "Vote Buying and Victory of Election: The Case of Taiwan," Prague Economic Papers, University of Economics, Prague, vol. 2016(5), pages 591-606.

    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • I20 - Health, Education, and Welfare - - Education - - - General
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism

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