Stochastic petropolitics: the dynamics of institutions in resource-dependent economies

Allbwn ymchwil: Cyfraniad at gyfnodolynErthygladolygiad gan gymheiriaid

Fersiynau electronig

Dogfennau

Dangosydd eitem ddigidol (DOI)

We investigate the link between resource revenues volatility and institutions. We build a stochastic differential game with two players (conservatives vs. liberals) lobbying for changing the institutions in their preferred directions. First, uncertainty surrounds the dynamics of institutions and the
resource revenues. Second, the lobbying power is asymmetric, the conservatives’ power being increasing with resource revenues. We show the existence of a unique equilibrium in the set of affine
strategies. We then examine to which extent uncertainty leads to more liberal institutions in the long run, compared to the deterministic case. We finally explore the institutional impact of volatility using a database covering 91 countries over the period 1973-2005. Focusing on financial liberalization,
we find that as oil revenue volatility increases, liberalization goes down. This result is robust to
different specifications and sample distinctions.
Iaith wreiddiolSaesneg
Rhif yr erthygl103610
CyfnodolynEuropean Economic Review
Cyfrol131
Dyddiad ar-lein cynnar24 Tach 2020
Dynodwyr Gwrthrych Digidol (DOIs)
StatwsCyhoeddwyd - 1 Ion 2021

Cyfanswm lawlrlwytho

Nid oes data ar gael
Gweld graff cysylltiadau