We develop a political economy model of Schumpeterian growth with entry where excessive red tape and bureaucracy are used strategically by the incumbent politician to acquire incumbency advantage. By setting sufficiently high red tape, the politician induces the monopolist to invest in...

This paper aims to explain the rise and fall of communism by exploring the interplay between economic incentives and social preferences transmitted by ideology. We introduce inequality-averse and inefficiency-averse agents and analyze their conflict through the interaction between leaders with...