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Why did (not) the East Extend the Franchise? Democracy, Intra-Elite Conflict and Risk Sharing

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  • Sayantan Ghosal
  • Eugenio Proto

Abstract

The process of enfranchisement is studied in a model of intra-elite conflict over the sharing of social surplus. The relative bargaining power of each elite, function of the surplus each elite is able to appropriate if the bargaining breaks down, is uncertain ex-ante. Accordingly, two competing elites can decide to enfranchise a weak but numerically large non-elite group in order to insure against future imbalances in relative bargaining power. The enfranchisement decision requires the non-elite group to be relatively weak and imperfectly informed about intra-elite bargaining power. Our results are robust to public good provision following enfranchisement when there is preference heterogeneity over the location of the public good across the different elites. A comparative analysis of the Indian Democracy is provided.

Suggested Citation

  • Sayantan Ghosal & Eugenio Proto, 2006. "Why did (not) the East Extend the Franchise? Democracy, Intra-Elite Conflict and Risk Sharing," DEGIT Conference Papers c011_032, DEGIT, Dynamics, Economic Growth, and International Trade.
    • Handle: RePEc:deg:conpap:c011_032
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    File URL: http://degit.sam.sdu.dk/papers/degit_11/C011_032.pdf
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    References listed on IDEAS

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    1. Daron Acemoglu & James A. Robinson, 2000. "Why Did the West Extend the Franchise? Democracy, Inequality, and Growth in Historical Perspective," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(4), pages 1167-1199.
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    5. Humberto Llavador & Robert J. Oxoby, 2005. "Partisan Competition, Growth, and the Franchise," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(3), pages 1155-1189.
    6. Lipset, Seymour Martin, 1959. "Some Social Requisites of Democracy: Economic Development and Political Legitimacy1," American Political Science Review, Cambridge University Press, vol. 53(1), pages 69-105, March.
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    Cited by:

    1. Oded Galor & Omer Moav & Dietrich Vollrath, 2009. "Inequality in Landownership, the Emergence of Human-Capital Promoting Institutions, and the Great Divergence," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(1), pages 143-179.

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