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The Role of Elites in Economic Development$
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the late Alice H. Amsden, Alisa DiCaprio, and James A. Robinson

Print publication date: 2012

Print ISBN-13: 9780199659036

Published to Oxford Scholarship Online: January 2013

DOI: 10.1093/acprof:oso/9780199659036.001.0001

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PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 18 September 2021

The Simple Analytics of Elite Behaviour under Limited State Capacity

The Simple Analytics of Elite Behaviour under Limited State Capacity

(p.251) 11 The Simple Analytics of Elite Behaviour under Limited State Capacity
The Role of Elites in Economic Development

François Bourguignon

Thierry Verdier

Oxford University Press

This chapter discusses the issue of taxation and redistribution in economies dominated by elites with limited state capacity. Within a simple aggregate framework, we discuss the political economy incentives of elites to tax, redistribute, and increase state capacity. In particular, the analysis highlights the role of complementarities or substitutability in the production process between the factors controlled by the elite and other social groups, and shows the existence of natural increasing returns for elites to increase state capacity. The chapter also discusses how the incentives for state capacity building are affected by political threats of power shifting

Keywords:   elites, redistribution, political economy, state capacity-building

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