The Political Economy of Sovereign Wealth Funds

Jürgen Jerger ()
Additional contact information
Jürgen Jerger: University of Regensburg

A chapter in Comparative Economic Studies in Europe, 2021, pp 97-107 from Palgrave Macmillan

Abstract: Abstract Sovereign Wealth Funds (SWF) play a significant role in many countries. In this paper, I develop a model that shows the potential of SWF to stabilise autocratic regimes. A ruling elite might have an incentive to put part of their income into such an investment vehicle. The reason is that a SWF gives credibility to a ruling elite with respect to their future decision on redistribution to the poor. This credibility is crucial for the elite since this helps to prevent the poor from staging a revolution. The implications of the model fit quite well the observation that the use of SWF is much more common in countries with autocratic political regimes.

Keywords: Stabilisation Fund; Sovereign Wealth Fund; Macroeconomic Governance; D74; E02; P48 (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:stuchp:978-3-030-48295-4_6

Ordering information: This item can be ordered from
http://www.palgrave.com/9783030482954

DOI: 10.1007/978-3-030-48295-4_6

Access Statistics for this chapter

More chapters in Studies in Economic Transition from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().