Power, Distributive Conflicts, and Multiple Growth Paths.

This article shows that multiple growth paths may occur in a politico-economic model of endogenous growth. This multiplicity is characterized by the coexistence of the low-tax, low-capital-flight equilibrium and a high-tax, high-capital-flight equilibrium. The likelihood of multiplicity is crucially related to the structure of power in society--namely, it is necessary that the politically decisive agents have a greater access to international capital markets than the average in the economy. Copyright 1997 by Kluwer Academic Publishers