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Political culture and economic decline

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  • Hillman, Arye L.
  • Ursprung, Heinrich W.

Abstract

In societies with a political culture of rent seeking, social norms do not disallow the use of political office for privileged distribution. Societies with such norms tend be characterized by political insiders and outsiders. We describe the attendant contestability of rents in the two domains of rent seeking when insiders seek politically assigned benefits and outsiders seek to re-position themselves as insiders, and show how successive stages of political liberalization result in economic decline. The model is considered against the background of the political liberalization that occurred in the post-socialist societies and the observed tendencies for economic decline, and at times economic collapse, in various of these societies’ economies.
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Suggested Citation

  • Hillman, Arye L. & Ursprung, Heinrich W., 2000. "Political culture and economic decline," European Journal of Political Economy, Elsevier, vol. 16(2), pages 189-213, June.
    • Handle: RePEc:eee:poleco:v:16:y:2000:i:2:p:189-213
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    More about this item

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • P30 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - General

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