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Growth-Friendly Dictatorships

Author

Listed:
  • Giacomo De Luca

    (University of York, United Kingdom)

  • Anastasia Litina

    (CREA, University of Luxembourg)

  • Petros G. Sekeris

    (FNRS and CRED, University of Namur, Belgium)

Abstract

In this paper we show that in highly unequal societies, different societal groups may support a rent-seeking dicator serving their interests better than the median voter in a democratic regime. Importantly, it is the stakes of dictator in the economy, in the form of capital ownership, that drives the support of individuals. In particular, in highly societies ruled by a capital-rich dictator endowed with the power to tax and appropriate at will, the elites support dictatorial policies that generate higher growth rates than the ones obtained under democracy. Such support arises despite the total absence of checks and balances on the dictator.

Suggested Citation

  • Giacomo De Luca & Anastasia Litina & Petros G. Sekeris, 2012. "Growth-Friendly Dictatorships," DEM Discussion Paper Series 12-13, Department of Economics at the University of Luxembourg.
    • Handle: RePEc:luc:wpaper:12-13
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    References listed on IDEAS

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. [経済]地獄に堕ちた勇者ども
      by himaginary in himaginaryの日記 on 2012-11-15 14:00:00
    2. Economic growth with egoistic dictators
      by Economic Logician in Economic Logic on 2012-10-30 19:32:00

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    Cited by:

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    6. William Easterly & Steven Pennings, 2020. "Leader Value Added: Assessing the Growth Contribution of Individual National Leaders," NBER Working Papers 27153, National Bureau of Economic Research, Inc.
    7. Gregory Brock, 2016. "Creative destruction on the Chechen frontier?," Post-Communist Economies, Taylor & Francis Journals, vol. 28(2), pages 220-231, April.
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    More about this item

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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