Publication Type

Working Paper

Publication Date

8-2007

Abstract

This paper establishes a simple model of long run economic and political development, which is driven by the inherent technical features of di¤erent production factors and the political con‡icts among factor owners on how to divide the outputs. The main production factor in economy evolves from land to physical capital and then to human capital, which enables their respective owners (landlords, capitalists, and workers) to gain political power in the same sequence, shaping the political development path from monarchy to oligarchy and …nally to democracy with full su¤rage. When it is too costly for any group of factor owners to repress others, political compromise is reached and economic progress is not blocked; otherwise, the political con‡icts may lead to economic stagnation.

Keywords

Economic Development, Political Development, Democratization, Class Structure, Land, Physical Capital, Human Capital, Monarchy, Oligarchy, Democracy, Su§ rage Extension.

Discipline

Growth and Development | Political Science

Research Areas

Macroeconomics

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

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