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Political Economy in a Changing World

Author

Listed:
  • Konstantin Sonin

    (New Economic School)

  • Georgy Egorov

    (Northwestern University)

  • Daron Acemoglu

    (Massachusetts Institute of Technology)

Abstract

We provide a general framework for the analysis of the dynamics of institutional change (e.g., democratization), and how this interacts with (anticipated and unanticipated) changes in the distribution of political power and changes in economic structure. We focus on the Markov voting equilibria, which require that economic and political changes should take place if there exists a subset of players with the power to implement such changes and who will obtain higher expected continuation utility by doing so. Assuming that economic and political institutions as well as individual types can be ordered, and preferences and the distribution of political power satisfy a natural "single crossing" condition, we prove the existence of pure-strategy equilibrium, provide conditions for its uniqueness, and present a number of comparative static results that apply at this level of generality. We then use this framework to study the dynamics of political rights and repression in the presence of radical groups that can stochastically grab power depending on the distribution of political rights in society. We characterize the conditions under which the presence of radicals leads to repression, show a type of path dependence in politics resulting from radicals coming to power, and identify a novel strategic complementarity in repression.

Suggested Citation

  • Konstantin Sonin & Georgy Egorov & Daron Acemoglu, 2013. "Political Economy in a Changing World," 2013 Meeting Papers 386, Society for Economic Dynamics.
  • Handle: RePEc:red:sed013:386
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    References listed on IDEAS

    as
    1. Jack, William & Lagunoff, Roger, 2006. "Dynamic enfranchisement," Journal of Public Economics, Elsevier, vol. 90(4-5), pages 551-572, May.
    2. Alberto Alesina & Ignazio Angeloni & Federico Etro, 2005. "International Unions," American Economic Review, American Economic Association, vol. 95(3), pages 602-615, June.
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    5. Barbera, S. & Maschler, M. & Shalev, J., 2001. "Voting for Voters: A Model of Electoral Evolution," Games and Economic Behavior, Elsevier, vol. 37(1), pages 40-78, October.
    6. Daron Acemoglu & Georgy Egorov & Konstantin Sonin, 2008. "Coalition Formation in Non-Democracies," Review of Economic Studies, Oxford University Press, vol. 75(4), pages 987-1009.
    7. Salvador Barbera & Matthew O. Jackson, 2004. "Choosing How to Choose: Self-Stable Majority Rules and Constitutions," The Quarterly Journal of Economics, Oxford University Press, vol. 119(3), pages 1011-1048.
    8. Gregory, Paul R. & Schröder, Philipp J.H. & Sonin, Konstantin, 2011. "Rational dictators and the killing of innocents: Data from Stalin's archives," Journal of Comparative Economics, Elsevier, vol. 39(1), pages 34-42, March.
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    15. Jack Hirshleifer & Michele Boldrin & David K Levine, 2009. "The Slippery Slope Of Concession," Economic Inquiry, Western Economic Association International, vol. 47(2), pages 197-205, April.
    16. Besley, Timothy & Coate, Stephen, 1998. "Sources of Inefficiency in a Representative Democracy: A Dynamic Analysis," American Economic Review, American Economic Association, vol. 88(1), pages 139-156, March.
    17. Michael C. Munger, 2001. "Voting," Chapters,in: The Elgar Companion to Public Choice, chapter 9 Edward Elgar Publishing.
    18. Daron Acemoglu & Georgy Egorov & Konstantin Sonin, 2010. "Political Selection and Persistence of Bad Governments," The Quarterly Journal of Economics, Oxford University Press, vol. 125(4), pages 1511-1575.
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    Citations

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    Cited by:

    1. Sangnier, Marc & Zylberberg, Yanos, 2017. "Protests and trust in the state: Evidence from African countries," Journal of Public Economics, Elsevier, vol. 152(C), pages 55-67.
    2. Kirill Borissov & Mikhail Pakhnin, 2018. "Economic growth and property rights on natural resources," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 65(2), pages 423-482, March.
    3. Sangnier, Marc & Zylberberg, Yanos, 2017. "Protests and trust in the state: Evidence from African countries," Journal of Public Economics, Elsevier, vol. 152(C), pages 55-67.
    4. Bisin, Alberto & Verdier, Thierry, 2017. "On the Joint Evolution of Culture and Institutions," CEPR Discussion Papers 12000, C.E.P.R. Discussion Papers.
    5. Etro, Federico, 2015. "Research in economics and political economy," Research in Economics, Elsevier, vol. 69(3), pages 261-264.

    More about this item

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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