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Democratic Errors

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Listed:
  • Christopher J. Ellis
  • John Fender

Abstract

We combine Acemoglu and Robinson’s model of the economic origins of democracy with Lohmann’s model of political mass protest. This allows us to analyze the economic causes of political regime change based on the microfoundations of revolution. We are able to derive conditions under which democracy arises peacefully, when it occurs only after a revolution, and when oligarchy persists. We model these possibilities in a world of asymmetric information where information cascades are possible, and where these cascades may involve errors in the sense that they make everyone worse off.

Suggested Citation

  • Christopher J. Ellis & John Fender, 2010. "Democratic Errors," Discussion Papers 10-03, Department of Economics, University of Birmingham.
  • Handle: RePEc:bir:birmec:10-03
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    References listed on IDEAS

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    9. Aftalion,Florin, 1990. "The French Revolution," Cambridge Books, Cambridge University Press, number 9780521368100, April.
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    18. Christopher J. Ellis & John Fender, 2014. "Public Sector Capital and the Transition from Dictatorship to Democracy," Manchester School, University of Manchester, vol. 82(3), pages 322-346, June.
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    More about this item

    Keywords

    Democracy; Information Cascades; Revolution;

    JEL classification:

    • H0 - Public Economics - - General
    • P4 - Economic Systems - - Other Economic Systems
    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism

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