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Political competition over property rights enforcement

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  • Auerbach, Jan U.

Abstract

I study what level of tax-financed property rights enforcement societies choose in elections when appropriators can steal from producers. Restrictions determine who can run for office. Candidates propose enforcement levels and tax rates. The election winner keeps the budget surplus. If the majority of voters are producers, then fewer restrictions on who can run for office are associated with more secure property rights. Lifting restrictions on who can run benefits producers, while lifting restrictions on who can vote does not. If the majority of voters are appropriators, then elections lead to adverse outcomes, irrespective of who can run for office.

Suggested Citation

  • Auerbach, Jan U., 2021. "Political competition over property rights enforcement," European Economic Review, Elsevier, vol. 131(C).
    • Handle: RePEc:eee:eecrev:v:131:y:2021:i:c:s0014292120302348
    DOI: 10.1016/j.euroecorev.2020.103604
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    More about this item

    Keywords

    Political process; Political institution; Political competition; Property rights;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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