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The Dynastic Transmission of Power, Exit Options and the Coevolution of Rent-Seeking Elites

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  • Arthur Silve
  • Thierry Verdier
  • Thierry Verdier

Abstract

We introduce a dynamic model that investigates the persistence and evolution of elite-dominated societies, where inherited political capital determines one’s social standing. Our analysis highlights the critical role of the distribution of exit options in the evolution of political inclusiveness across generations. An elite comparatively more mobile than the masses generally entrenches a politically stratified society, whereas a more widespread distribution of exit options can encourage inclusiveness. Under certain conditions differential mobility may still induce political inclusiveness across generations. Exit options across different political entities lead to a joint evolution of local power structures.

Suggested Citation

  • Arthur Silve & Thierry Verdier & Thierry Verdier, 2023. "The Dynastic Transmission of Power, Exit Options and the Coevolution of Rent-Seeking Elites," CESifo Working Paper Series 10410, CESifo.
    • Handle: RePEc:ces:ceswps:_10410
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    More about this item

    Keywords

    political dynasties; elite dynamics; exit options; rent-seeking; political spillovers;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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