Arbeitspapier
Hobbes to Rousseau : Inequality, Institutions, and Development
We analyze the endogenous evolution of economic and political institutions and the interdependencies with the process of economic development. Favorable economic institutions ensure the appropriability of rents in form of a state of law. We study the conditions under which a state of law can be implemented under oligarchy, and when democratization is necessary. Inequality in endowments and incomes prolongs the absence of good institutions and delays democratization. Conversely, institutions shape the income distribution. Simulations illustrate how inequality affects the development process and may lead to overtaking and divergence. The implications are in line with historical and empirical evidence.
- Language
-
Englisch
- Bibliographic citation
-
Series: IZA Discussion Papers ; No. 1450
- Classification
-
Wirtschaft
Economic History: Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations: General, International, or Comparative
Development Planning and Policy: General
Structure and Scope of Government: General
- Subject
-
inequality
democratization
institutions
state of law
long-term development
Institutioneller Wandel
Entwicklung
Rechtsstaat
Einkommensverteilung
Demokratisierung
Verfassungsökonomik
Public Choice
Theorie
- Event
-
Geistige Schöpfung
- (who)
-
Cervellati, Matteo
Fortunato, Piergiuseppe
Sunde, Uwe
- Event
-
Veröffentlichung
- (who)
-
Institute for the Study of Labor (IZA)
- (where)
-
Bonn
- (when)
-
2005
- Handle
- Last update
-
10.03.2025, 11:46 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Cervellati, Matteo
- Fortunato, Piergiuseppe
- Sunde, Uwe
- Institute for the Study of Labor (IZA)
Time of origin
- 2005
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