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Inefficient predation and political transitions

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  • Dorsch, Michael T.
  • Maarek, Paul

Abstract

This paper presents a theory of endogenous economic institutions in non-democracies, where political accountability is enforced through the threat of revolution. We consider a dynamic game between an elite ruling class and a disenfranchised working class, in which workers have imperfect information about the economy's productive possibilities. We characterize the conditions under which (i) the elite implement an inefficient rent-creating economic institution at the risk of provoking a revolution based on institutional grievances, (ii) information shocks can catalyze revolutionary movements that may be contagious among similar countries, and (iii) democratic transitions can be consolidated following revolutionary liberalizations.

Suggested Citation

  • Dorsch, Michael T. & Maarek, Paul, 2015. "Inefficient predation and political transitions," European Journal of Political Economy, Elsevier, vol. 37(C), pages 37-48.
  • Handle: RePEc:eee:poleco:v:37:y:2015:i:c:p:37-48
    DOI: 10.1016/j.ejpoleco.2014.10.010
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    Cited by:

    1. Aidt, Toke S. & Jensen, Peter S., 2014. "Workers of the world, unite! Franchise extensions and the threat of revolution in Europe, 1820–1938," European Economic Review, Elsevier, vol. 72(C), pages 52-75.
    2. Marino, Maria & Donni, Paolo Li & Bavetta, Sebastiano & Cellini, Marco, 2020. "The democratization process: An empirical appraisal of the role of political protest," European Journal of Political Economy, Elsevier, vol. 63(C).
    3. Mario Gilli & Yuan Li, 2021. "Selectorate’s information and dictator’s accountability," Conflict Management and Peace Science, Peace Science Society (International), vol. 38(5), pages 524-542, September.
    4. Dorsch, Michael T. & Maarek, Paul, 2019. "Democratization and the Conditional Dynamics of Income Distribution," American Political Science Review, Cambridge University Press, vol. 113(2), pages 385-404, May.
    5. Aidt, Toke S. & Albornoz, Facundo & Gassebner, Martin, 2018. "The golden hello and political transitions," Journal of Comparative Economics, Elsevier, vol. 46(1), pages 157-173.
    6. Toke Aidt & Gabriel Leon & Max Satchell, 2017. "The Social Dynamics of Collective Action: Evidence from the Captain Swing Riots, 1830-31," CESifo Working Paper Series 6773, CESifo.
    7. Thomas Apolte & Lena Gerling, 2018. "Youth bulges, insurrections and labor-market restrictions," Public Choice, Springer, vol. 175(1), pages 63-93, April.
    8. Dorsch, Michael T. & Dunz, Karl & Maarek, Paul, 2016. "Development and inefficient regulation under the threat of revolution," Journal of Comparative Economics, Elsevier, vol. 44(4), pages 1040-1054.
    9. Pierre André & Paul Maarek, 2017. "Education, social capital and political participation Evidence from school construction in Malian villages," THEMA Working Papers 2017-18, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    10. Michael Dorsch & Karl Dunz & Paul Maarek, 2015. "Macro shocks and costly political action in non-democracies," Public Choice, Springer, vol. 162(3), pages 381-404, March.
    11. Gilli, Mario & Li, Yuan, 2015. "Coups, revolutions and efficient policies in autocracies," European Journal of Political Economy, Elsevier, vol. 39(C), pages 109-124.
    12. Dorsch, Michael T. & Maarek, Paul, 2018. "Rent extraction, revolutionary threat, and coups in non-democracies," Journal of Comparative Economics, Elsevier, vol. 46(4), pages 1082-1103.

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    More about this item

    Keywords

    Inefficient institutions; Revolution; Economic liberalization; Contagion; Democratic consolidation;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • P48 - Economic Systems - - Other Economic Systems - - - Political Economy; Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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