2015
DOI: 10.1007/s11127-015-0239-x
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Macro shocks and costly political action in non-democracies

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Cited by 17 publications
(13 citation statements)
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“…Second, our model introduces asymmetric information concerning the growth potential of the economy in a laissez-faire environment. Given our focus, the nature of the shock that can trigger political transition is quite different than in the previous literature that has generally considered macro-economic shocks that affect the cost of revolting in terms of foregone alternative opportunities (see Dorsch et al, 2012 for an exception). Rather, our model considers shocks that inform the workers' beliefs about whether growth potential exists in the economy, but has been suppressed by the elite's institutional choice, and that a transition to a laissez-faire economic institution will be worth the costly revolution necessary to achieve it.…”
Section: Discussion Of Resultsmentioning
confidence: 99%
See 1 more Smart Citation
“…Second, our model introduces asymmetric information concerning the growth potential of the economy in a laissez-faire environment. Given our focus, the nature of the shock that can trigger political transition is quite different than in the previous literature that has generally considered macro-economic shocks that affect the cost of revolting in terms of foregone alternative opportunities (see Dorsch et al, 2012 for an exception). Rather, our model considers shocks that inform the workers' beliefs about whether growth potential exists in the economy, but has been suppressed by the elite's institutional choice, and that a transition to a laissez-faire economic institution will be worth the costly revolution necessary to achieve it.…”
Section: Discussion Of Resultsmentioning
confidence: 99%
“…5 In their very careful study of the "third wave" of democratization (from 1980-2000), Haggard and Kaufman (2012) find "surprisingly limited evidence in support of the general claim that redistributive conflicts between elites and masses account for either transitions to democracy or reversions from it". Dorsch et al (2012) provide empirical evidence over a longer panel of autocratic countries that political conflict may be driven by institutional grievances. Importantly, we assume that lasting deregulation destroys rents and is efficiency enhancing à la Aidt and Hillman (2008).…”
mentioning
confidence: 99%
“…Other channels through which corruption reduces growth are the negative effects on human capital and private investment. In a recent study, Dorsch et al (2015) show that corruption (in the form of rent seeking) triggers instability effects of macro-economic shocks in autocracies.…”
Section: -Introductionmentioning
confidence: 99%
“…(), and Dorsch et al . () also present empirical evidence in favor of a negative income shock as a trigger for changes toward democracy (see also sections 5 and 6).…”
Section: Empirical Research On Income and Democracymentioning
confidence: 68%