Political equality, coalition formation, and economic performance in autocracies

Autocracies have diverse records of economic growth. This paper provides a theory of endogenous coalition formation to explain economic performance in autocracy. The nature of the ruling coalition that the autocrat relies on to rule the society and extract rents affects the degree of inclusiveness o...

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Main Author: Yang Yao
Format: Article
Language:English
Published: KeAi Communications Co. Ltd. 2021-03-01
Series:China Economic Quarterly International
Subjects:
D4
O4
P5
Online Access:http://www.sciencedirect.com/science/article/pii/S2666933120300022
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author Yang Yao
author_facet Yang Yao
author_sort Yang Yao
collection DOAJ
description Autocracies have diverse records of economic growth. This paper provides a theory of endogenous coalition formation to explain economic performance in autocracy. The nature of the ruling coalition that the autocrat relies on to rule the society and extract rents affects the degree of inclusiveness of the autocracy's political and economic institutions that ultimately determines economic performance. A stable ruling coalition has to be invasion-proof --- i.e., being able to resist invasion from outside --- and coalition-proof --- i.e., being able to prevent split from inside. In a political environment where side payments are allowed to buy political support, a ruling coalition is coalition-proof if and only if it satisfies Condition E, i.e., every pair of its member groups holds similar levels of political power relative to the power of any third group (including the autocrat). When more pairs of groups satisfy Condition E in a society, the ultimate ruling coalition becomes more inclusive and societal output is increased.
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spelling doaj.art-17829c1ca87b4c8ebae70bdc943a92682022-12-27T04:38:35ZengKeAi Communications Co. Ltd.China Economic Quarterly International2666-93312021-03-01117283Political equality, coalition formation, and economic performance in autocraciesYang Yao0National School of Development, Peking University, China Center for Economic Research, ChinaAutocracies have diverse records of economic growth. This paper provides a theory of endogenous coalition formation to explain economic performance in autocracy. The nature of the ruling coalition that the autocrat relies on to rule the society and extract rents affects the degree of inclusiveness of the autocracy's political and economic institutions that ultimately determines economic performance. A stable ruling coalition has to be invasion-proof --- i.e., being able to resist invasion from outside --- and coalition-proof --- i.e., being able to prevent split from inside. In a political environment where side payments are allowed to buy political support, a ruling coalition is coalition-proof if and only if it satisfies Condition E, i.e., every pair of its member groups holds similar levels of political power relative to the power of any third group (including the autocrat). When more pairs of groups satisfy Condition E in a society, the ultimate ruling coalition becomes more inclusive and societal output is increased.http://www.sciencedirect.com/science/article/pii/S2666933120300022D4O4P5
spellingShingle Yang Yao
Political equality, coalition formation, and economic performance in autocracies
China Economic Quarterly International
D4
O4
P5
title Political equality, coalition formation, and economic performance in autocracies
title_full Political equality, coalition formation, and economic performance in autocracies
title_fullStr Political equality, coalition formation, and economic performance in autocracies
title_full_unstemmed Political equality, coalition formation, and economic performance in autocracies
title_short Political equality, coalition formation, and economic performance in autocracies
title_sort political equality coalition formation and economic performance in autocracies
topic D4
O4
P5
url http://www.sciencedirect.com/science/article/pii/S2666933120300022
work_keys_str_mv AT yangyao politicalequalitycoalitionformationandeconomicperformanceinautocracies