We build a political economy model of state policy choice highlighting the challenges to breaking barriers to the adoption of inclusive policies in Africa. We highlight necessary and sufficient conditions for a political leader to gain from implementing exclusive policies: (i) Implementing...

Inclusivity is perhaps the single most important human need to facilitate and demonstrate fairness for all members in an open and free society. When this principle need is compromised by appearances of unscrupulous self-interested privileged elites to perpetuate a systemic widening disparity...

This paper examines the effect of trade integration and comparative advantage on one of a country's institutions, which in turn influences its economic efficiency. The environment we explore is one in which a country's lower classes may revolt and appropriate wealth owned by a ruling elite. The...

This paper deals with the risk of opportunism – the usual risk in economic exchanges. The breach of contract is probably the most common event in daily life and has therefore attracted research and debates in many disciplines of the social sciences. Our discussion deals with the current...

This paper studies the combined effects of legal fees and legal expenses insurance. We use a litigation model to compare litigants' settlement decisions under a before-the-event insurance plus an hourly fee contract (BTE) and an after-the-event insurance plus a conditional fee contract (ATE)....

Can corruption improve economic efficiency? Classical political economists argue that corruption undermines the rule of law (Smith 2001, Chap 5). The modern Public Choice proponents argue that corruption might influence the efficiency of the rule of law. While Chicago Public Choice scholars...

The paper deals with the question of the governance of common-pool resources when exogenous enforcement is not available. We assert that the recent 'linked games approach' seems to neglect that in order to be effective and to deter agents free-riding and/or hold-up, a linked game has to register...