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The Political Economy of Non Convergence

Brazilian Review of Econometrics

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Title The Political Economy of Non Convergence
The Political Economy of Non Convergence
 
Creator Kanczuk, Fabio; University of São Paulo
 
Subject Growth; politics; kleptocracy .
O4,Z0 .
Growth; politics; kleptocracy .
O4,Z0 .
 
Description I analyze the joint dynamics of distortionary taxation and economic growth in an environment where taxes are set by self-interested kleptocratic politicians competing for electoral success. The incumbent's incentive to appropriate resources is tempered by a desire to get reelected which would allow him to steal in future periods. Weak electoral control (or high agency costs) is consistent with "distortion-liberalization cycles" - oscillatory movements in economic activity - and also with endogenous "political risk", which reduces private investment. Agency costs can therefore account for permanent differences in international growth rates and for the phenomenon of conditional "non-convergence".
Eu analiso as dinâmicas conjuntas da tributação distorciva e do crescimento econômico num ambiente em que os impostos são cobrados por políticos kleptocraticos. Os incentivos de um político de se apropriar indevidamente de recursos é moderado por seu interesse de se reeleger, e assim roubar em períodos futuros. Controle eleitoral fraco (ou custos de agência altos) são consistentes com "ciclos de distorção e liberalização" - movimentos oscilatórios na atividade econômica - e com "risco político" endógeno, que reduz o investimento privado. Custos de agência podem, dessa forma, explicar as diferenças permanentes das taxas de crescimento internacionais, e o fenômeno de "não-convergência" condicional.
 
Publisher Sociedade Brasileira de Econometria
 
Date 2000-11-02
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
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Format application/pdf
 
Identifier http://bibliotecadigital.fgv.br/ojs/index.php/bre/article/view/2756
10.12660/bre.v20n22000.2756
 
Source Brazilian Review of Econometrics; Vol 20, No 2 (2000); 155-188
Brazilian Review of Econometrics; Vol 20, No 2 (2000); 155-188
1980-2447
 
Language eng
 
Relation http://bibliotecadigital.fgv.br/ojs/index.php/bre/article/view/2756/1690