Guimaraes, Bernardo; Sheedy, Kevin D. - London School of Economics (LSE) - 2012
Institutions that serve the interests of an elite are often cited as an important reason for poor economic performance …. This paper builds a model of institutions that allocate resources and power to maximize the payoff of an elite, but where … any group that exerts sufficient fighting effort can launch a rebellion that destroys the existing institutions. The …