This article investigates the political cost of poverty in democracies marked by deep social divisions. We develop a probabilistic voting model that incorporates clientelism as a strategic tool employed by elite political parties to secure electoral support from non-elite voters. Unlike models...

Businesspeople are expected to invest in political connections when the institutions are weak. Using an original dataset from Russia in 2003-2010, we document changes in political connections of the richest businesspeople and show that within the institutional environment of a fledgling...