World Price Shocks, Income, and Democratization

Arbeitspapier

This paper shows how a world price shock can increase the likelihood that democratization must be used to resolve the threat of revolution. Initially, a ruling elite may be able to use trade policy to maintain political stability. But a world price shock can push the country into a situation where the elite face a commitment problem that only democratization can resolve. Because the world price shock may also reduce average incomes, the model provides a way to understand why the level of national income per capita and democracy may not be positively correlated. The model is also useful for understanding dictatorial regimes' rebuttal of World Bank calls to keep their export markets open in the face of the 2007-08 world food crisis.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CESifo Working Paper ; No. 5228

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Distribution: General ; Conflict; Conflict Resolution; Alliances; Revolutions ; Neoclassical Models of Trade ; Trade Policy; International Trade Organizations ; Capitalist Systems: Political Economy
• Thema: democracy ; institutions ; price shocks ; social conflict ; trade policy

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Zissimos, Benjamin
• Ereignis: Veröffentlichung
• (wer): Center for Economic Studies and ifo Institute (CESifo)
• (wo): Munich
• (wann): 2015

Weitere Informationen

• Handle: http://hdl.handle.net/10419/108767
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ