In this paper we study why the misallocation of resources across different productive sectors tends to persist over time. To this end we propose a general equilibrium model that delivers two structural relations. On the one hand, the public expenditure distribution influences the future sectoral...

The study contributes to the political economy debate in Africa by examining the extent to which economic development mediates the effect of elections on government expenditure. To this end, the study employs macrodata spanning 1985-2015 on 43 African countries for the analysis. Robust evidence...

In this paper we try to explain why the misallocation of resources across different productive sectors tends to persist over time. We document that there is a link between the distribution of the public expenditure across sectors and the sectoral composition of an economy. We propose a general...