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Political Power, Elite Control, and Long-Run Development: Evidence from Brazil

Author

Listed:
  • Claudio Ferraz
  • Frederico Finan
  • Monica Martinez-Bravo

Abstract

This paper analyzes how changes in the concentration of political power affect long-run development. We study Brazil’s military dictatorship whose rise to power dramatically altered the distribution of power of local political elites. We document that municipalities that were more politically concentrated prior to the dictatorship in the 1960s are relatively richer in 2000, despite being poorer initially. Our evidence suggests that this reversal of fortune was the result of the military’s policies aimed at undermining the power of traditional elites. These policies increased political competition among traditional elites, leading to better governance, more public goods, and higher income levels.

Suggested Citation

  • Claudio Ferraz & Frederico Finan & Monica Martinez-Bravo, 2024. "Political Power, Elite Control, and Long-Run Development: Evidence from Brazil," Journal of the European Economic Association, European Economic Association, vol. 22(6), pages 2870-2908.
    • Handle: RePEc:oup:jeurec:v:22:y:2024:i:6:p:2870-2908.
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    File URL: http://hdl.handle.net/10.1093/jeea/jvae033
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    Cited by:

    1. Baerlocher, Diogo & Caldas, Renata & Cavalcanti, Francisco & Schneider, Rodrigo, 2025. "Natural disasters and voting behavior under authoritarian regimes: Evidence from the Brazilian shrimp vote," Journal of Economic Behavior & Organization, Elsevier, vol. 234(C).
    2. Mehmood, Sultan & Seror, Avner, 2023. "Religious leaders and rule of law," Journal of Development Economics, Elsevier, vol. 160(C).
    3. Eslava, Francisco & Valencia Caicedo, Felipe, 2023. "Origins of Latin American Inequality," IDB Publications (Working Papers) 12940, Inter-American Development Bank.
    4. González, Felipe & Muñoz, Pablo & Prem, Mounu, 2021. "Lost in transition? The persistence of dictatorship mayors," Journal of Development Economics, Elsevier, vol. 151(C).
    5. Andres Irarrazaval, 2022. "The Fiscal Origins of Comparative Inequality levels: An Empirical and Historical Investigation," Working Papers wp531, University of Chile, Department of Economics.
    6. Gonzalez, Felipe & Prem, Mounu, 2021. "The Legacy of the Pinochet Regime," SocArXiv v5yjf, Center for Open Science.
    7. repec:osf:socarx:d6x54_v1 is not listed on IDEAS
    8. Iyigun, Murat & Rubin, Jared & Seror, Avner, 2021. "A theory of cultural revivals," European Economic Review, Elsevier, vol. 135(C).

    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • N46 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Latin America; Caribbean
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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