EconPapers    
Economics at your fingertips  
 

Petro Rents, Political Institutions, and Hidden Wealth: Evidence from Offshore Bank Accounts

Jørgen Andersen (), Niels Johannesen, David Lassen () and Elena Paltseva

Journal of the European Economic Association, 2017, vol. 15, issue 4, 818-860

Abstract: Do political institutions limit rent seeking by politicians? We study the transformation of petroleum rents, almost universally under direct government control, into hidden wealth using unique data on bank deposits in offshore financial centers that specialize in secrecy and asset protection. Our main finding is that plausibly exogenous shocks to petroleum income are associated with significant increases in hidden wealth, but only when institutional checks and balances are weak. The results suggest that around 15% of the windfall gains accruing to petroleum-producing countries with autocratic rulers is diverted to secret accounts. We find very limited evidence that shocks to other types of income not directly controlled by governments affect hidden wealth.

JEL-codes: D72 O13 P51 Q32 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1093/jeea/jvw019 (application/pdf)
Access to full text is restricted to subscribers.

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:oup:jeurec:v:15:y:2017:i:4:p:818-860.

Access Statistics for this article

More articles in Journal of the European Economic Association from European Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().

 
Page updated 2022-06-08
Handle: RePEc:oup:jeurec:v:15:y:2017:i:4:p:818-860.