Publication Type

Working Paper

Version

publishedVersion

Publication Date

8-2006

Abstract

This paper establishes a simple model of long run economic and political development, which is driven by the inherent technical features of different production factors, and political conflicts among factor owners on how to divide the outputs. The main capital form 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 powers in the same sequence, shaping the political development path from monarchy to elite ruling and finally to full suffrage. 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 conflicts may lead to economic stagnation.

Discipline

Growth and Development | Political Economy

Research Areas

Macroeconomics

First Page

1

Last Page

28

Publisher

SMU Economics and Statistics Working Paper Series, No. 22-2006

City or Country

Singapore

Copyright Owner and License

Authors

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