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Endogenous Property Rights, Conflict Intensity and Inequality in Asymmetric Rent-seeking Contest
Высшая школа экономики
,
2014.
No. 72.
Yarkin A.
Does less inequality in wealth distribution imply better property rights protection? In this paper we show that this impact is non monotonous and is conditional on a) equilibrium type: conflict (rent-seeking) or peace, b) the reasons of changes in wealth distribution, and c) the size of the ruling class, “elite”. In the conflict stage, institutional quality positively depends on the wealth of the elite, but negatively – on the size of the elite class. However, the transition from conflict to peace stage (with no rent-seeking and fast growth) requires the reduction of inequality. This generates an institutional trap. Moreover, the intensity of rent-seeking behavior increases both with progressive redistribution of wealth and with widening of the ruling class. Our results allow characterizing wealth distributions, wherein it is better to redistribute wealth or to expand the ruling class in order to improve institutions and limit rent-seeking incentives.
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This paper analyses the impact of inequality in wealth distribution on the strength of property rights in non-democratic countries. We construct the model with asymmetric rent-seeking contest and endogenous institutions to demonstrate that the impact of inequality on property rights is non monotonous and conditional on a) what the inequality is driven by: higher aggregate ...
Added: October 6, 2014
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Objective. To analyze and summarize the results obtained in various social sciences regarding the emergence and spread of prejudice.
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Gokhberg L., Бизнес-журнал 2006 № 16(100)
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Turku : [б.и.], 2012
The Pan-European Institute publishes a quarterly discussion forum Baltic Rim Economies (BRE) which focuses on the development of the Baltic Sea region. In BRE, high level public and corporate decision makers, representatives of Academia, and several other experts contribute to the discussion. ...
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