Political Regime Change and State Performance

Debojyoti Mazumder and Rajit Biswas ()

Review of Economics and Institutions, 2017, vol. 8, issue 1

Abstract: The present model analyses how the state would provide services when the change of power depends upon the performance of the state. Agents can evaluate state performance based either only on the receipt of government services, or both on the benefit from government services and taxes imposed. With a credible threat of power change, if the valuation of the government services is low, along with a low fiscal capacity, then it is less probable that this service would be provided. Furthermore, such an allocation is compared with a situation, when there exists a threat of active opposition. Interestingly, that threat does not change the optimum provisioning of government services (as compared to the previous situation) in the equilibrium.

Keywords: state capacity; regime change; conflict; taxes; government services (search for similar items in EconPapers)
JEL-codes: D72 D74 H2 H4 (search for similar items in EconPapers)
Date: 2017
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