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We propose a model where an autocrat rules over an ethnically divided society. The dictator selects the tax rate over domestic production and the nation's natural resources to maximize his rents under the threat of a regime-switching revolution. We show that a weak ruler may let the country...
Persistent link: https://www.econbiz.de/10009200993
This paper develops a simple model to investigate how resource-driven economic booms shape the equilibrium political institutions of resource-rich societies and in uence the likelihood of experiencing civil war. In our model a strong government apparatus favors property rights protection but...
Persistent link: https://www.econbiz.de/10010763241