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Dictatorship in a Single Export Crop Economy

Author

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  • Lode Berlage
  • Bart Capeau
  • Philip Verwimp

Abstract

Is it a matter of pure altruism or shortsightedness when a dictator spends an increasing amount of his revenues for the population, while cutting on own consumption? In order to be able to consume, the dictator first has to stay in power. We present a formal model of a power maximizing dictator. His revenues depend on the exports of a single crop. With the export earnings the dictator buys loyalty from the producers of the export crop by setting the domestic producer price. Revenues resulting from the di®erence between the international and the domestic price of the crop are used to finance a repressive apparatus. We characterize the optimal trade-o® between buying more loyalty and adapting the level of repression. The model is illustrated with a case study of Rwanda under president Habyarimana (1973-94).

Suggested Citation

  • Lode Berlage & Bart Capeau & Philip Verwimp, 2003. "Dictatorship in a Single Export Crop Economy," Working Papers Department of Economics ces0311, KU Leuven, Faculty of Economics and Business, Department of Economics.
  • Handle: RePEc:ete:ceswps:ces0311
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    References listed on IDEAS

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    1. Hardle, Wolfgang & Linton, Oliver, 1986. "Applied nonparametric methods," Handbook of Econometrics,in: R. F. Engle & D. McFadden (ed.), Handbook of Econometrics, edition 1, volume 4, chapter 38, pages 2295-2339 Elsevier.
    2. Sachs, J-D & Warner, A-M, 1995. "Natural Resource Abundance and Economic Growth," Papers 517a, Harvard - Institute for International Development.
    3. Hardle, Wolfgang & Linton, Oliver, 1986. "Applied nonparametric methods," Handbook of Econometrics,in: R. F. Engle & D. McFadden (ed.), Handbook of Econometrics, edition 1, volume 4, chapter 38, pages 2295-2339 Elsevier.
    4. Daron Acemoglu & James A. Robinson, 2001. "A Theory of Political Transitions," American Economic Review, American Economic Association, pages 938-963.
    5. Daron Acemoglu & Jorn-Steffen Pischke, 1999. "Minimum Wages and On-the-job Training," NBER Working Papers 7184, National Bureau of Economic Research, Inc.
    6. Verwimp, Philip, 2003. "The political economy of coffee, dictatorship, and genocide," European Journal of Political Economy, Elsevier, vol. 19(2), pages 161-181, June.
    7. Hardle, Wolfgang & Linton, Oliver, 1986. "Applied nonparametric methods," Handbook of Econometrics,in: R. F. Engle & D. McFadden (ed.), Handbook of Econometrics, edition 1, volume 4, chapter 38, pages 2295-2339 Elsevier.
    8. Lam, R., 1999. "Dictatorship as a Political Dutch Disease," Papers 795, Yale - Economic Growth Center.
    9. Ricky Lam & Leonard Wantchekon, 1999. "Dictatorships as a Political Dutch Disease," Working Papers 795, Economic Growth Center, Yale University.
    10. Wintrobe,Ronald, 1998. "The Political Economy of Dictatorship," Cambridge Books, Cambridge University Press, number 9780521583299, December.
    11. Daron Acemoglu & James A. Robinson, 2001. "A Theory of Political Transitions," American Economic Review, American Economic Association, pages 938-963.
    12. repec:cup:apsrev:v:84:y:1990:i:03:p:849-872_19 is not listed on IDEAS
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    Cited by:

    1. Kolleen J. Rask & Norman Rask, 2017. "The Impact of Regime Type on Food Consumption in Low Income Countries," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, pages 107-125.

    More about this item

    Keywords

    dictatorship; political economy; co®ee; Rwanda.;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War

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