Obfuscation, Inequality and Votes: A Model of Policy Choice under Rent Seeking

David Hojman ()
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David Hojman: University of Liverpool, Postal: Department of Economics and Accounting, The School of Management,University of Liverpool, Chatham Street, Liverpool, L69 7ZH, Great Britain

No 2002_04, Working Papers from University of Liverpool, Department of Economics

Abstract: This paper applies the concept of optimal obfuscation to fast-growth, high-inequality emergent economies. The obfuscation level depends on the nature of policy, government propaganda or 'spin', and GDP growth. The conditions are identified for a negative impact of economic growth on electoral support for the government, as well as for the relative size of the impacts on the vote of a marginal decline in growth, as opposed to a marginal increase in the exogenous component of obfuscation. The model suggests reasons behind different responses in government policy, and policy labelling, to falling electoral support in Chile and Malaysia.

Keywords: Rent seeking; Optimal obfuscation; Inequality; Chile; Malaysia (search for similar items in EconPapers)
JEL-codes: D3 D63 D72 D8 J7 O1 P5 (search for similar items in EconPapers)
Date: 2002
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Persistent link: https://EconPapers.repec.org/RePEc:liv:livedp:2002_04

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