Timothy Besley and Torsten Persson
- Published in print:
- 2011
- Published Online:
- October 2017
- ISBN:
- 9780691152684
- eISBN:
- 9781400840526
- Item type:
- chapter
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691152684.003.0005
- Subject:
- Economics and Finance, History of Economic Thought
This chapter summarizes the lessons from Chapter 4 in the form of a function that describes endogenous political turnover. This preliminary allows us to study equilibrium investments in fiscal and ...
More
This chapter summarizes the lessons from Chapter 4 in the form of a function that describes endogenous political turnover. This preliminary allows us to study equilibrium investments in fiscal and legal capacity in the comprehensive core model. Section 5.2 develops the model by adding private capital formation along the same lines as in Section 3.2.3, but in a setting where the risk of civil war affects the expected return to private investment. Section 5.3 discusses the empirical implications of our comprehensive framework and how it can be used to interpret observed patterns in the data. Section 5.4 puts the typologies of investment states and violence states together into an Anna Karenina principle of development, an allusion to the Tolstoy quote at the beginning of the chapter. It also briefly revisits the possibility of a predatory state and observes how this enriches our understanding of nonprosperity.Less
This chapter summarizes the lessons from Chapter 4 in the form of a function that describes endogenous political turnover. This preliminary allows us to study equilibrium investments in fiscal and legal capacity in the comprehensive core model. Section 5.2 develops the model by adding private capital formation along the same lines as in Section 3.2.3, but in a setting where the risk of civil war affects the expected return to private investment. Section 5.3 discusses the empirical implications of our comprehensive framework and how it can be used to interpret observed patterns in the data. Section 5.4 puts the typologies of investment states and violence states together into an Anna Karenina principle of development, an allusion to the Tolstoy quote at the beginning of the chapter. It also briefly revisits the possibility of a predatory state and observes how this enriches our understanding of nonprosperity.
