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Political Rents in a Non-Corrupt Democracy

  • Svaleryd, Helena

    ()

    (Research Institute of Industrial Economics)

  • Vlachos, Jonas

    ()

    (Stockholm University)

A fundamental problem in all political systems is that the people in power may extract rents to the detriment of the general public. In a democracy, electoral competition and information provided by the media may keep such rent extraction at bay. We develop a simple model where rents are decreasing in the degree of political competition and voter information. In line with our theoretical predictions, we find that both increased political competition and increased local media coverage substantially reduce direct measures of legal political rents among local governments in a non-corrupt democracy (Sweden).

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Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 698.

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Length: 57 pages
Date of creation: 16 Feb 2007
Date of revision: 26 Mar 2008
Publication status: Published as Svaleryd, Helena and Jonas Vlachos, 'Political Rents in a Non-Corrupt Democracy' in Journal of Public Economics, 2009, pages 355-372.
Handle: RePEc:hhs:iuiwop:0698
Contact details of provider: Postal:
Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden

Phone: +46 8 665 4500
Fax: +46 8 665 4599
Web page: http://www.ifn.se/
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