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Land and Power

  • Baland, Jean-Marie
  • Robinson, James A

We study the implications of electoral corruption for resource allocation, factor market equilibrium and inequality. We focus on the control of the voting of agricultural workers by landlords and show that if the employment relationship is subject to moral hazard then the resulting rents conceded by employers give them a comparative advantage in controlling the political activities of their workers. This generates an added incentive to own land and leads to inefficiently high land concentration. We test the predictions of the model by examining in detail the effects of the introduction of the secret ballot in Chile in 1958.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3800.

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Date of creation: Feb 2003
Date of revision:
Handle: RePEc:cpr:ceprdp:3800
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  1. Persson, Torsten & Tabellini, Guido, 1997. "Political Economics and Macroeconomic Policy," CEPR Discussion Papers 1759, C.E.P.R. Discussion Papers.
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  7. Dilip Mookherjee, 1995. "Informational Rents and Property Rights in Land," Boston University - Institute for Economic Development 55, Boston University, Institute for Economic Development.
  8. Torsten Persson & Guido Tabellini, 2005. "The Economic Effects of Constitutions," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262661926, June.
  9. James M. Snyder, 1991. "On Buying Legislatures," Economics and Politics, Wiley Blackwell, vol. 3(2), pages 93-109, 07.
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