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Inclusiveness, Growth, and Political Support

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  • Richard Carson

    (Carleton University)

Abstract

This paper links political support to economic growth. Governments gain support from wealth creation and income redistribution, and the quest for support links differences in economic systems to differences in political systems; inefficiencies persist when they raise support. Depending on how a government obtains it, the quest for support can either lower efficiency and raise the consumption cost of growth or lead to inclusiveness, efficiency, and sustainable growth, a kind of ‘political invisible hand.’ If they do not already exist, however, the incentive to adopt the institutions needed to make this invisible hand work well is likely to be low.

Suggested Citation

  • Richard Carson, 2020. "Inclusiveness, Growth, and Political Support," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 46(4), pages 557-575, October.
    • Handle: RePEc:pal:easeco:v:46:y:2020:i:4:d:10.1057_s41302-020-00171-7
    DOI: 10.1057/s41302-020-00171-7
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    References listed on IDEAS

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    Cited by:

    1. Richard Carson, 2020. "The Welfare Loss from Monopoly Re-visited," Carleton Economic Papers 20-13, Carleton University, Department of Economics, revised 30 Aug 2021.

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    More about this item

    Keywords

    Growth; Efficiency; Inclusiveness; Political advantage; Rent seeking;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • P59 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Other

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