Myerson, Roger B. - In: Theoretical economics : TE ; an open access journal in … 5 (2010) 1, pp. 73-91
to expropriate. Political liberalization can relax this constraint, increasing the government's revenue, but also … increasing the ruler's political risks. We analyze the ruler's optimal liberalization, where our measure of political … liberalization is the probability of the ruler being replaced if he tried to expropriate private investments. Poorer endowments can …