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Political Rents, Promotion Incentives, and Support for a Non-Democratic Regime AgEcon
Lazarev, Valery.
This paper analyzes the economic foundations of a non-democratic political regime, where the ruling bureaucracy captures rents through collective control over state property and job assignment. The model developed here yields the equilibrium in the “political labor market,” where the ruling bureaucracy buys services and political support of activists recruited from the working population. The underlying implicit contract requires that the incumbent bureaucrats retire after a certain time to allow for deferred promotion of activists into rent-paying positions. The major implications are that the stability of a non-democratic regime is consistent with high-income gap between the rulers and the rest of the population, strengthened when government pursues an...
Tipo: Working or Discussion Paper Palavras-chave: Non-democratic regimes; Bureaucracy; Hierarchy; Political support; Promotion incentives; Implicit contract; Soviet Union; Political Economy; D72; J45; N44; P30.
Ano: 2004 URL: http://purl.umn.edu/28381
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