Political Instability and Growth in Dictatorships

We model growth in dictatorships facing each period an endogenous probability of ‘political catastrophe’ that would extinguish the regime's wealth extraction ability. Domestic capital exhibits a bifurcation point determining economic growth or shrinkage. With low initial domestic capital the dictator plunders the country's resources and the economy shrinks. With high initial domestic capital the economy eventually grows faster than is socially optimal.

MoreLess

Year of publication:	2000-12
Authors:	Overland, Jody ; Simons, Kenneth L ; Spagat, Michael
Institutions:	C.E.P.R. Discussion Papers
Subject:	Bifurcation \| Dictatorship \| Growth \| Political Economy

More details

Extent:	application/pdf
Series:	CEPR Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	Number 2653
Classification:	D90 - Intertemporal Choice and Growth. General ; O10 - Economic Development. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005136680