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subjects may exit. In a simple model, both kinds of competition are substitutes. Internal competition (democracy) benefits … democracy, and rulers are less eager to oppose it, when external competition is high. In a panel of countries, there are fewer … changes towards democracy when states have low GDP relative to their neighbours. -- political competition ; dictatorship …
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The author reviews Acemoglu and Robinson's book, Economic Origins of Dictatorship and Democracy …
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We propose a simple quality-ladder model with heterogeneous agents differing in their skills and wealth endowment to explain the persistence of barriers to entry in new democracies. In the model agents vote for a rate of redistribution and for the level of barriers to entry, which protect the...
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