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Democracy and Development : The Devil in the Details

Persson, Torsten - 2006

Does democracy promote economic development? We review recent attempts to address this question, which exploit the within-country variation associated with historical transitions in and out of democracy. The answer is positive, but depends -- in a subtle way -- on the details of democratic...

Persistent link: https://www.econbiz.de/10012466677

The Growth Effect of Democracy : Is It Heterogenous and How Can It Be Estimated?

Persson, Torsten - 2007

We estimate the effect of political regime transitions on growth with semi-parametric methods, combining difference in differences with matching, that have not been used in macroeconomic settings. Our semi-parametric estimates suggest that previous parametric estimates may have seriously...

Persistent link: https://www.econbiz.de/10012465503

Is Inequality Harmful for Growth? Theory and Evidence

Persson, Torsten - 1991

Is inequality harmful for growth? We suggest that it is. To summarize our main argument: in a society where distributional conflict is more important, political decisions are more likely to produce economic policies that allow private individuals to appropriate less of the returns to growth...

Persistent link: https://www.econbiz.de/10012475421

Social Organizations and Political Institutions : Why China and Europe Diverged

Mokyr, Joel; Tabellini, Guido - 2023

Western Europe. An important factor, recognized in the literature, is that China centralized state institutions very early on …, while Europe remained politically fragmented for much longer. These initial differences, however, were amplified by the … different social organizations (clans in China, corporate structures in Europe) that spread in these two societies at the turn …

Persistent link: https://www.econbiz.de/10014357030

Mobile Internet and the Rise of Political Tribalism in Europe

Manacorda, Marco; Tabellini, Guido; Tesei, Andrea - 2022

We study the political effects of the diffusion of mobile Internet between 2007 and 2017, using data on electoral outcomes and on mobile Internet signal across the 84,564 municipalities of 22 European countries. We find that access to mobile Internet increased voters’ support for right-wing...

Persistent link: https://www.econbiz.de/10014244346

Reserve Requirements on Sovereign Debt in the Presence of Moral Hazard -- on Debtors or Creditors?

Aizenman, Joshua - 1999

This paper characterizes the effects of reserve requirements on financial loans in the presence of moral hazard on the lender side (i.e., the anticipation that the taxpayer will bailout lending banks if large default will occur) and sovereign risk on the borrower side. The impacts of such...

Persistent link: https://www.econbiz.de/10012471796

Capital Market Imperfections and the Theory of Optimum Currency Areas

Agenor, Pierre-Richard - 2008

This paper studies how capital market imperfections affect the welfare effects of forming a currency union. The analysis considers a bank-only world where intermediaries compete in Cournot fashion and monitoring and state verification are costly. The first part determines the credit market...

Persistent link: https://www.econbiz.de/10012464557

Volatility and the Welfare Costs of Financial Market Integration

Agenor, Pierre-Richard - 1998

This paper examines the effect of volatility on the costs and benefits of financial market integration. The basic framework combines the costly state verification model and the contract enforceability approach. The welfare effects of financial market integration are assessed by comparing welfare...

Persistent link: https://www.econbiz.de/10012472031

Capital Mobility in a Second Best World -- Moral Hazard With Costly Financial Intermediation

Aizenman, Joshua - 1998

This paper studies the welfare effects of financial integration in the presence of moral hazard. Entrepreneurs face a trade off between risk and return. Banks may mitigate the resultant excessive risk by costly monitoring, where greater risk reduction requires more resources devoted to risk...

Persistent link: https://www.econbiz.de/10012472110

Privatization in Emerging Markets

Aizenman, Joshua - 1998

This paper evaluates the welfare implications of privatization in emerging market economies, in countries where policies are determined by the median voter. We show that privatization may lead to large efficiency gains by changing the menu of taxes. We illustrate this point with two examples....

Persistent link: https://www.econbiz.de/10012472283