Ghate, Chetan; Le, Quan Vu; Zak, Paul J. - In: Review of Development Economics 7 (2003) 4, pp. 583-598
The paper presents a model of optimal government policy when policy choices may exacerbate sociopolitical instability (SPI). The authors show that optimal policy that takes into account SPI transforms a standard concave growth model into a model with both a poverty trap and endogenous growth....
