Populist Policies In The Transition To Democracy
This paper develops a political economy model that provides an explanation as for why ruling elites in oligarquic societies may rely on income redistribution to the poor (the masses) in order to prevent them from attempting a revolution. We refer to this kind of redistribution as populist redistribution because, first it does not increase the poor’s productive capacity (human capital), and second it seeks to “buy” political support (peace) to perpetuate the elite’s control of political power. We examine the conditions under which ruling elites choose to deter the poor (by means of military repression and/or populist redistribution), to engage in a dispute with the poor for the control of political power, or, alternatively, to extend democracy. According to the results of the model populist redistribution (or military repression), if any, increases with initial wealth inequality and with the amount of redistribution that the poor can undertake under democracy, and decreases with the relative importance of a human capital externality in production. The model explains why in some cases the use of an apparently ine cient policy of populist redistribution turns out to be optimal for both groups (the ruling elite and the poor class) when the alternative is to use of military repression or default to conflict.
|Date of creation:||31 Aug 2005|
|Date of revision:|
|Contact details of provider:|| |
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bourguignon, F. & Verdier, T., 1997.
"Oligarchy, Democracy, Inequality and Growth,"
DELTA Working Papers
97-10, DELTA (Ecole normale supérieure).
- Daron Acemoglu, 2007.
"Oligarchic Versus Democratic Societies,"
Carlo Alberto Notebooks
47, Collegio Carlo Alberto.
- Miguel Urrutia, 1991. "On the Absence of Economic Populism in Colombia," NBER Chapters, in: The Macroeconomics of Populism in Latin America, pages 369-391 National Bureau of Economic Research, Inc.
- H. I. Grossman & M. Kim, 1999.
"Educational Policy: Egalitarian or Elitist?,"
365, Dipartimento Scienze Economiche, Universita' di Bologna.
- Daron Acemoglu, 2003. "The Form of Property Rights: Oligarchic vs. Democratic Societies," NBER Working Papers 10037, National Bureau of Economic Research, Inc.
- Rudiger Dornbusch & Sebastian Edwards, 1991. "Introduction to "The Macroeconomics of Populism in Latin America"," NBER Chapters, in: The Macroeconomics of Populism in Latin America, pages 1-4 National Bureau of Economic Research, Inc.
- Galor, Oded & Zeira, Joseph, 1993.
"Income Distribution and Macroeconomics,"
Review of Economic Studies,
Wiley Blackwell, vol. 60(1), pages 35-52, January.
- Ian Morris, 2004. "Economic Growth in Ancient Greece," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 160(4), pages 709-, December.
- Campante, Filipe R. & Ferreira, Francisco H.G., 2007.
"Inefficient lobbying, populism and oligarchy,"
Journal of Public Economics,
Elsevier, vol. 91(5-6), pages 993-1021, June.
- Campante, Felipe R. & Ferreira, Francisco G.H., 2004. "Inefficient lobbying, populism and oligarchy," Policy Research Working Paper Series 3240, The World Bank.
- Francisco H. G. Ferreira & Filipe Campante, 2004. "Inefficient lobbying, populism and oligarchy," Textos para discussão 483, Department of Economics PUC-Rio (Brazil).
- Skaperdas, Stergios, 1996.
"Contest Success Functions,"
Springer, vol. 7(2), pages 283-90, February.
- Jeffrey D. Sachs, 1989. "Social Conflict and Populist Policies in Latin America," NBER Working Papers 2897, National Bureau of Economic Research, Inc.
- Dornbusch, Rudiger & Edwards, Sebastian, 1989.
"The macroeconomics of populism in Latin America,"
Policy Research Working Paper Series
316, The World Bank.
- Gershenson, Dmitriy, 2002. "Sanctions and Civil Conflict," Economica, London School of Economics and Political Science, vol. 69(274), pages 185-206, May.
- Ernesto Dal Bó & Pedro Dal Bó, 2011.
"Workers, Warriors, And Criminals: Social Conflict In General Equilibrium,"
Journal of the European Economic Association,
European Economic Association, vol. 9(4), pages 646-677, 08.
- Pedro DalBo & Ernesto DalBo, 2004. "Workers, Warriors and Criminals: Social Conflict in General Equilibrium," Working Papers 2004-11, Brown University, Department of Economics.
- Pedro Dal bÃ³, 2004. "Workers, Warriors and Criminals: Social Conflict in General Equilibrium," Econometric Society 2004 Latin American Meetings 341, Econometric Society.
- Pedro Dal BÃ³ & Ernesto Dal BÃ³, 2004. "Workers, Warriors and Criminals: Social Conflict in General Equilibrium," Econometric Society 2004 North American Summer Meetings 642, Econometric Society.
- Hirshleifer, Jack, 1991. "The Technology of Conflict as an Economic Activity," American Economic Review, American Economic Association, vol. 81(2), pages 130-34, May.
- Stanley L. Engerman & Kenneth L. Sokoloff, 2001.
"The Evolution of Suffrage Institutions in the New World,"
NBER Working Papers
8512, National Bureau of Economic Research, Inc.
- Engerman, Stanley L. & Sokoloff, Kenneth L., 2005. "The Evolution of Suffrage Institutions in the New World," The Journal of Economic History, Cambridge University Press, vol. 65(04), pages 891-921, December.
- Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-27, October.
- Giuseppe Bertola, 1991.
"Factor Shares and Savings in Endogenous Growth,"
NBER Working Papers
3851, National Bureau of Economic Research, Inc.
- Francisco H.G. Ferreira, 2001. "Education for the masses? The interaction between wealth, educational and political inequalities," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 9(2), pages 533-552, July.
- Alesina, A. & Drazen, A., 1991.
"Why Are Stabilizations Delayed?,"
6-91, Tel Aviv - the Sackler Institute of Economic Studies.
- Grossman, Herschel I & Kim, Minseong, 1996.
" Predation and Accumulation,"
Journal of Economic Growth,
Springer, vol. 1(3), pages 333-50, September.
- Mark Gradstein, 2007. "Inequality, democracy and the protection of property rights," Economic Journal, Royal Economic Society, vol. 117(516), pages 252-269, 01.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Rudiger Dornbusch & Sebastian Edwards, 1989. "Macroeconomic Populism in Latin America," NBER Working Papers 2986, National Bureau of Economic Research, Inc.
- Oded Galor & Omer Moav, 2006.
"Das Human-Kapital: A Theory of the Demise of the Class Structure,"
Review of Economic Studies,
Oxford University Press, vol. 73(1), pages 85-117.
- Oded Galor & Omer Moav, 2004. "Das Human Kapital: A Theory of the Demise of the Class Structure," GE, Growth, Math methods 0410003, EconWPA.
- repec:cup:cbooks:9780521855266 is not listed on IDEAS
- Grossman, Herschel I & Kim, Minseong, 1995. "Swords or Plowshares? A Theory of the Security of Claims to Property," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1275-88, December.
When requesting a correction, please mention this item's handle: RePEc:col:000094:003357. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Clorith Angélica Bahos Olivera)
If references are entirely missing, you can add them using this form.