Private Incentives versus Class Interests: A Theory of Optimal Institutions with An Application to Growth
We build a dynamic political economy model with a two-class society: workers and the elite. A key feature of the model is that the formation of the elite, the rate of innovation, taxes and public spending are endogenous. Differently from most of the literature on institutions and growth which emphasizes the conflict between different classes, we focus on the tension between private incentives of the members of the elite and their class interests. Our model explains the observed differences in colonization strategies by showing how the optimal choice of institutions depends on the initial conditions faced by colonizing powers. The model also creates a mapping between institutions and economic outcomes which is consistent with the observed differences in the patterns of economic growth.
|Date of creation:||2008|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.EconomicDynamics.org/society.htm
More information through EDIRC
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.:
- Jack, William & Lagunoff, Roger, 2006.
Journal of Public Economics,
Elsevier, vol. 90(4-5), pages 551-572, May.
- William Jack & Roger Lagunoff, 2003. "Dynamic Enfranchisement," Levine's Bibliography 666156000000000030, UCLA Department of Economics.
- William Jack & Roger Lagunoff, 2003. "Dynamic Enfrachisement," Working Papers gueconwpa~03-03-03, Georgetown University, Department of Economics.
- Roger Lagunoff & William Jack, 2004. "Dynamic Enfranchisement," 2004 Meeting Papers 466, Society for Economic Dynamics.
- William Jack & Roger Lagunoff, 2003. "Dynamic Enfranchisement," Public Economics 0306002, EconWPA, revised 01 Jul 2003.
- William Jack & Roger Lagunoff, 2003. "Dynamic Enfranchisement," Wallis Working Papers WP36, University of Rochester - Wallis Institute of Political Economy.
- Roger Lagunoff & William Jack, 2004. "Dynamic Enfranchisement," Econometric Society 2004 North American Summer Meetings 24, Econometric Society.
- Galor, Oded & Zeira, Joseph, 1988.
"Income Distribution and Macroeconomics,"
51644, University Library of Munich, Germany, revised 01 Sep 1989.
- Naomi R. Lamoreaux & Kenneth L. Sokoloff, 2005. "The Decline of the Independent Inventor: A Schumpterian Story?," NBER Working Papers 11654, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:red:sed008:939. 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: (Christian Zimmermann)
If references are entirely missing, you can add them using this form.