Political culture and economic decline

Arye L. Hillman and Heinrich W. Ursprung ()
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Arye L. Hillman: Bar- Ilan University
Heinrich W. Ursprung: University of Konstanz

A chapter in 40 Years of Research on Rent Seeking 2, 2000, pp 219-243 from Springer

Abstract: Abstract In societies with a political culture of rent seeking, social norms do not disallow the use of political office for privileged distribution. Societies with such norms tend be characterized by political insiders and outsiders. We describe the attendant contestability of rents in the two domains of rent seeking when insiders seek politically assigned benefits and outsiders seek to re-position themselves as insiders, and show how successive stages of political liberalization result in economic decline. The model is considered against the background of the political liberalization that occurred in the post-socialist societies and the observed tendencies for economic decline, and at times economic collapse, in various of these societies’ economies.

Keywords: Political culture; Transition; Rent seeking; Political liberalization (search for similar items in EconPapers)
JEL-codes: H11 P30 (search for similar items in EconPapers)
Date: 2000
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-540-79247-5_12

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DOI: 10.1007/978-3-540-79247-5_12

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