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Growth-friendly dictatorships

Author

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  • De Luca, Giacomo
  • Litina, Anastasia
  • Sekeris, Petros G.

Abstract

This research argues that in highly unequal societies, a rent-seeking and self-maximizing dictator may be supported by a fraction of the population, despite the absence of special benefits to these societal groups. Importantly, it is the stakes of the dictator in the economy, in the form of capital ownership, that drive the support of individuals. In highly unequal societies ruled by a capital-rich dictator endowed with the power to tax and appropriate at will, the elites will support dictatorial policies given that they can generate higher growth rates than the ones obtained under democracy. This support arises unconditionally to special benefits to the elites and despite the total absence of checks and balances on the dictator.

Suggested Citation

  • De Luca, Giacomo & Litina, Anastasia & Sekeris, Petros G., 2015. "Growth-friendly dictatorships," Journal of Comparative Economics, Elsevier, vol. 43(1), pages 98-111.
  • Handle: RePEc:eee:jcecon:v:43:y:2015:i:1:p:98-111
    DOI: 10.1016/j.jce.2013.09.002
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. [経済]地獄に堕ちた勇者ども
      by himaginary in himaginaryの日記 on 2012-11-15 14:00:00
    2. Economic growth with egoistic dictators
      by Economic Logician in Economic Logic on 2012-10-30 19:32:00

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    6. William Easterly & Steven Pennings, 2020. "Leader Value Added: Assessing the Growth Contribution of Individual National Leaders," NBER Working Papers 27153, National Bureau of Economic Research, Inc.
    7. Gregory Brock, 2016. "Creative destruction on the Chechen frontier?," Post-Communist Economies, Taylor & Francis Journals, vol. 28(2), pages 220-231, April.
    8. Boucekkine, Raouf & Piacquadio, Paolo G. & Prieur, Fabien, 2019. "A Lipsetian theory of voluntary power handover," Journal of Economic Behavior & Organization, Elsevier, vol. 168(C), pages 269-291.
    9. Sen, Kunal & Pritchett, Lant & Kar, Sabyasachi & Raihan, Selim, 2016. "Democracy Versus Dictatorship? The Political Determinants of Growth Episodes," Working Paper Series rwp17-009, Harvard University, John F. Kennedy School of Government.
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    12. Raouf Boucekkine & Paolo Giovanni Piacquadio & Fabien Prieur, 2016. "A Lipsetian Theory of Democratization: Development, Education, Inequality, and Resources," CESifo Working Paper Series 6283, CESifo.

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    More about this item

    Keywords

    Regime type; Capital distribution; Growth;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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