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- W2546500771 abstract "This paper discusses the political consequences of international asset mobility. Within a given country, the elite can extract rents from the production sector, and they also produce themselves. The rents extracted are distortive, and the elite face a tradeo between extractive or e cient policies. Factor mobility favors more e cient, and less extractive policies. The model yields several predictions. When the masses are mobile, political inclusiveness spills over from abroad, and rents are limited. Conversely, if the elite are mobile, but the masses are captive, political inclusiveness abroad buttresses the elite and favors political polarization. Such a model provides interesting insights in the role of liberal democracies abroad. First, they set up an international context in which patrimonial regimes thrive, and in which their own economic and political outcomes are negatively a ected. Second, tax evasion is shown to be a necessary outcome of asymmetric asset mobility in big countries. Such countries, including but not limited to OECD countries, favor the emergence and stability of tax havens, with negative political consequences at home." @default.
- W2546500771 created "2016-11-11" @default.
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- W2546500771 date "2015-01-01" @default.
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- W2546500771 title "Democratic spillovers - rent-seeking elites, mobile assets, and the coevolution of political institutions" @default.
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