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Formal models of the political resource curse

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  • Desiree A. Desierto

    (Stanford University
    University of Wisconsin-Madison)

Abstract

By surveying formal models, I demonstrate that the political resource curse is the misallocation of revenues from natural resources and other windfall gains by political agents. I show that the curse always exists if political agents are rent-seeking, since mechanisms of government accountability, e.g. electoral competition, the presence of political challengers, and even the threat of violent conflict, are inherently imperfect. However, the scope for rent-seeking becomes more limited as the competition over political power that threatens the incumbent government becomes more intense.

Suggested Citation

  • Desiree A. Desierto, 2018. "Formal models of the political resource curse," Economics of Governance, Springer, vol. 19(3), pages 225-259, August.
    • Handle: RePEc:spr:ecogov:v:19:y:2018:i:3:d:10.1007_s10101-018-0207-2
    DOI: 10.1007/s10101-018-0207-2
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    More about this item

    Keywords

    Resource curse; Political rent-seeking; Misappropriation of resource revenues;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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