Dorsch, Michael and Maarek, Paul (2012): Inefficient predation, information, and contagious institutional change.
Download (360kB) | Preview
This paper presents an agency theory of revolutionary political transitions from autocracy to democracy. We model authoritarian economic policy as the equilibrium outcome of a repeated game between an elite ruling class and a disenfranchised working class, in which workers have imperfect information about the elite's policy choice and the economy's productive capacity. We characterize the conditions under which, in equilibrium, (i) the elite will set inefficient economic institutions under the threat of revolution, (ii) information shocks can catalyze democratic revolutions that may be contagious among similar countries, and (iii) democracy can be consolidated following a political transition.
|Item Type:||MPRA Paper|
|Original Title:||Inefficient predation, information, and contagious institutional change|
|Keywords:||Political transition, Revolution, Asymmetric information, Contagion, Democratic consolidation, Arab Spring|
|Subjects:||D - Microeconomics > D7 - Analysis of Collective Decision-Making > D71 - Social Choice ; Clubs ; Committees ; Associations
D - Microeconomics > D7 - Analysis of Collective Decision-Making > D74 - Conflict ; Conflict Resolution ; Alliances ; Revolutions
P - Economic Systems > P4 - Other Economic Systems > P48 - Political Economy ; Legal Institutions ; Property Rights ; Natural Resources ; Energy ; Environment ; Regional Studies
|Depositing User:||Paul Maarek|
|Date Deposited:||12 May 2012 23:55|
|Last Modified:||21 Oct 2016 00:26|
Acemoglu, D. (2006) Modeling inefficient institutions, in Advances in Economic Theory and Econometrics: Proceedings of the 2005 World Congress of the Econometric Society (Eds.) R. Blundell, W. Newey and T. Persson, Cambridge University Press, Cambridge.
Acemoglu, D. (2008) Oligarchic versus democratic societies, Journal of the European Economics Association, 6, 1-44.
Acemoglu, D. (2010) Institutions, factor prices and taxation: Virtues of strong states?, American Economic Review, 100, 115-119.
Acemoglu, D. and Robinson, J. (2001) A theory of political transitions, American Economic Review, 91, 938-963.
Acemoglu, D. and Robinson, J. (2006) The Economic Origins of Dictatorship and Democracy, Cambridge University Press, Cambridge.
Acemoglu, D. and Robinson, J. (2008) Persistence of power, elites, and institutions, American Economic Review, 98, 267-293.
Acemoglu, D., Ticchi, D. and Vindigni, A. (2010) A theory of military dictatorships, American Economic Journal: Macroeconomics, 2, 1-42.
Aidt, T. and Jensen, P. (2011) Workers of the world unite! Franchise extensions and the threat of revolution in Europe, 1820-1938, CESifo Working Paper No. 3417.
Barro, R. (1973) The control of politicians: An economic model, Public Choice, 14, 19-42.
Besley, T. (2006) Principled Agents? The Political Economy of Good Government, Oxford University Press, Oxford.
Besley, T. and Persson, T. (2009) The origins of state capacity: Property rights, taxation, and politics, American Economic Review, 99, 1218-1244.
Besley, T. and Persson, T. (2010) State capacity, conflict, and development, Econometrica, 78, 1-34.
Bueno de Mesquita, E. (2010) Regime change and revolutionary entrepreneurs, American Political Science Review, 104, 446-466.
Chassang, S. and Padro-i-Miquel, G. (2009) Economic shocks and civil war, Quarterly Journal of Political Science, 4, 211-228.
Djankov, S., La Porta, R., Lopez-De-Silanes, F. and Shleifer, A. (2002) The regulation of entry, Quarterly Journal of Economics, 117, 1-37.
Ellis, C. and Fender, J. (2010) Information cascades and revolutionary regime transitions, Economic Journal, 121, 763-792.
Ferejohn, J. (1986) Incumbent performance and electoral control, Public Choice, 50, 5-25.
Garnkel, M. R. and Skaperdas, S. (2007) Economics of con ict: An overview, in Handbook of Defense Economics - Defense in a Globalized World (Eds.) T. Sandler and K. Hartley, Elsevier, vol. 2, pp. 649-709.
Grossman, H. (1991) A general equilibrium model of insurrections, American Economic Review, 81, 912-921.
Kuran, T. (1989) Sparks and prairie res: A theory of unanticipated political revolution, Public Choice, 61, 41-74.
La Porta, R. and Schliefer, A. (2008) The unofficial economy and economic development, Brookings Papers on Economic Activity, 9, 275-352.
Lohmann, S. (1994) Information aggregation through costly political action, American Economic Review, 84, 518-530.
Pissarides, C. (2000) Equilibrium Unemployment Theory, MIT Press, Cambridge.
Rodrik, D. (1999) Democracies pay higher wages, The Quarterly Journal of Economics, 114, 707-738.
Tullock, G. (1971) The paradox of revolution, Public Choice, 11, 89-99.