This paper analyses the consequences of an unusual type of land redistribution; we take land from the very rich, as usual, but give it to the rich instead of the poor. We show that such "moderate" reform reduces agency costs and thereby increases productivity, total surplus in the economy, and...

This paper analyzes whether political outcomes in local democracies are determinedby the preferences of the median -typically poor- agents or whether they reflect thewishes of the wealthy elites. A model shows that when politicians belonging to differentgroups can form coalitions, the wealthy...

This paper analyzes whether political outcomes in local democracies are determined by the preferences of the median - typically poor - agents or whether they reflect the wishes of the wealthy elites. A model shows that when politicians belonging to different groups can form coalitions, the...