McGuire, Martin C.; Mancur Olson Jr. - In: Journal of Economic Literature 34 (1996) 1, pp. 72-96
If the leader of a bandit gang in an anarchy can hold a territory, he gains from becoming a public-good-providing autocrat. His monopoly over crime gives him an "encompassing" stake in the productivity of his domain that limits his tax-theft and makes him pay for public goods. We prove that a...