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Power fragmentation and the resource curse

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  • Rabah Arezki
  • Grégoire Rota-Graziosi

Abstract

This paper explores the economic consequences of (taxing) power fragmentation using both theory and data. We first formalize tax policy as the result of interministerial competition where the Minister of Finance ('Guardian') and the Minister of Mines ('Spender') have distinct objective functions, whereby the former attempts to stop the latter from extending tax incentives to attract investment in the sector.

Suggested Citation

  • Rabah Arezki & Grégoire Rota-Graziosi, 2026. "Power fragmentation and the resource curse," WIDER Working Paper Series wp-2026-7, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2026-7
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    References listed on IDEAS

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    3. Rogoff, Kenneth, 1990. "Equilibrium Political Budget Cycles," American Economic Review, American Economic Association, vol. 80(1), pages 21-36, March.
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    6. Alfonso Ugarte-Ruiz, 2023. "locproj: A new Stata command to estimate local projections," 2023 Stata Conference 11, Stata Users Group.
    7. Patrick Francois & Ilia Rainer & Francesco Trebbi, 2015. "How Is Power Shared in Africa?," Econometrica, Econometric Society, vol. 83, pages 465-503, March.
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