Political Instability and Growth in Dictatorships
40 Pages Posted: 20 Feb 2001
Date Written: November 2000
Abstract
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.
JEL Classification: D9, O1, H
Suggested Citation: Suggested Citation
Spagat, Michael and Simons, Kenneth L. and Overland, Jody R., Political Instability and Growth in Dictatorships (November 2000). Available at SSRN: https://ssrn.com/abstract=260758 or http://dx.doi.org/10.2139/ssrn.260758
Do you have negative results from your research you’d like to share?
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.