rent preservation - persistance of underdevelopment
TRANSCRIPT
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
1/41
178
American Economic Journal: Macroeconomics 2009, 1:1, 178218http://www.aeaweb.org/articles.php?doi = 10.1257/mac.1.1.178
W y e e o s i de developed co t ies so di fc lt? O e view is t ti y de developed co t ies t e elite i t i t ei e ts by o cis bopti l policies o t e est o t e pop l tio t o opp essive politic l i sti-t tio s. Yet politic l i stit tio s do c e. U o t tely, e cip tio , i depe -
de ce, d eve de oc tiz tio ve ot es lted i owt -e ci e o s.U less t ese c es i politic l i stit tio s e co plete s , d o o e wit-essi electio s i poo co t ies like I di co ld co cl de t t, t e swe stexist elsew e e.
O e possibility (see Willi R. E ste ly 2001, 2006 ) is t t eco o ists si plydo ot k ow w t it t kes to li t co t ies o t o pove ty, d t t develop e t is co seq e ce o co t ies itti po t e i t policies t o t i l d e o oeve by c ce. I o e is willi to ccept t is ve y e l possibility, t t we k owlittle, t e p zzle ets o e co plex. W y do citize s o poo co t ies, w o ve
obt i ed t e politic l powe to vote o t old elites, f d it so d to e ct t e i tpolicy e o s t t will li t t e o t o pove ty?Let e expl i y swe . Let co stit e cy be o p w e e e c e be
s t e s e cto e dow e ts (e. . ed c tio ) d t e e o e si il p e e e ces
* G d te Sc ool o B si ess, U ive sity o C ic o, 5807 S. Woodl w , C ic o IL 60637 d NBER(e- il: @c ic o sb.ed ). I t k Pete Go evic , Steve H be , Robe t I , Si o Jo so , S biL ll, Rod ey R c , A to io Spili be o, A vi d S b i , d se i p ticip ts t t e U ive sityo C li o i , Be keley, B ow U ive sity, H v d U ive sity, t e I te tio l Mo et y F d, d t eU ive sity o Pe sylv i o v l ble co e ts s well s t e N tio l Scie ce Fo d tio d t e Ce te o
t e St dy o t e St te d t e Eco o y t t e U ive sity o C ic o G d te Sc ool o B si ess o f ci ls ppo t. I especi lly te l to K l Ho , Bil e Yil z, d L i i Zi les, w ose co t ib tio s to t isve sio ve bee i v l ble. I t k Y is Tok tlidis o ese c ssist ce. A e lie ve sio o t is p pew s e titled T e Pe siste ce o U de develop e t: I stit tio s, H C pit l, o Co stit e cies?.
To co e t o t is ticle i t e o li e disc ssio o visit t e ticles p e t ttp://www. e web.o / ticles.p p?doi = 10.1257/ c.1.1.178.
Rent Preservation and the Persistenceof Underdevelopment
By Raghuram G. Rajan *
When citizens in a poor constrained society are unequally endowed,they are likely to fnd it hard to agree on re orms, even though thestatus quo hurts them collectively. Each citizen group or constituency
pre ers re orms that expand its opportunities, but in an unequal soci-ety, this will typically hurt another constituencys rents. Competitiverent preservation ensures no comprehensive re orm path may com-
mand broad support. The roots o underdevelopment may there orelie in the natural tendency toward rent preservation in a divided society. ( JEL D72, O10, O17 )
http://www.aeaweb.org/articles.php?doi=10.1257/mac.1.1.178http://www.aeaweb.org/articles.php?doi=10.1257/mac.1.1.178http://www.aeaweb.org/articles.php?doi=10.1257/mac.1.1.178http://www.aeaweb.org/articles.php?doi=10.1257/mac.1.1.178 -
8/3/2019 Rent Preservation - Persistance of Underdevelopment
2/41
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
3/41
180 AMEriCAN ECoNoMiC JourNAL: MACroECoNoMiCs JANuArY 2009
( ) .
G , - k ,
. I , , ,
, .
M , q . I
, . I zz k ,
, j , . T ,
. Y , -, k .
I , -, q , q
. M - . E
, . I ,
k , , . A ,
. I , k k , ,
k . T k
. C - .
I , I -, . . T . F , , - . S z . S ,
, z k z . T z ; z .T -
. T q -, . T . R ,
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
4/41
VoL. 1 No. 1 181 rAJAN: rENT prEsErVATioN ANd uNdErdEVELopMENT
k .T , -
. P q k z , q , -
, . P , , .T q q - . O z . I , E z , , , , . I
, z ( E K L. S k 2005 ). I , -
, , - , k ( D
A , S J , J A. R 2001 ).I , E -
q , (
k , D C. N B R. W 1989 A , J , R 2005. F k ,
E L. G . 2004 ). M E , E V.M , S k 2002 q -
, , q . I -
.T . I S I, I -
. I S II, I k.I S III, I z . I S IV, I -
q . I S V, I . I S VI, I , .
I. Motivation
A I , , k -
k . T I W
V S (WVS ), - j U M .
A. W l Val e s vey an Att t e T wa C m et t n
I 2000 I . T I k ,
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
5/41
182 AMEriCAN ECoNoMiC JourNAL: MACroECoNoMiCs JANuArY 2009
. T k :
H w w l y lace y v ew n th cale? 1 mean y ag ee c m- letely w th the tatement n the le t; 10 mean y ag ee c m letely w th
the tatement n the ght; an y v ew all mewhe e n between, y can ch e any n mbe n between.
T C m et t n ha m l. it b ng t the w t n e le. T C m et t n g . it t m late e le tw k ha an evel new ea . A T 1 ,
2002 7.8 2.9.T k q
( , , , , . ), ( , z / ), ( ). T . I , I
, -
. I .I . I
35, 35 55 , 55 . T ,
. I . A j
( ). I , I . I - ( ), - ( - k k k ),
, .
B. E cat n an Att t e T wa C m et t n
I T 2 ( 1 ), I -
. I , I . R
.C 1 , 25 . I 2, I ( )
, - ( ) , 5 . I 3, I .
T . A -
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
6/41
VoL. 1 No. 1 183 rAJAN: rENT prEsErVATioN ANd uNdErdEVELopMENT
-. M , ,
. I , -
.F , k
( ). A q . A , -. I 4, I q
( ). E - .
Table 1Summary Statistics
VM
( )A 7.7898
(2.9391 )
M 0.5674(0.4956 )
Y 0.4131(0.4925 )
M 0.4021(0.4904 )
M 0.3591(0.4798 )
L 0.2027(0.4021 )
R 0.2652(0.4416 )
R 0.1603(0.367 )
B 0.1728(0.3782 )
E 4.4505(3.0897 )
O 2,002
N te : T 2000 W V S I . Y 35. M 35 55 . M 1
k . L 1 k , k k , - k
k , k k . R 1 50,000 , 1
5,000 . B 1 k , , - . E , 1 ( ) 9 ( ).
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
7/41
184 AMEriCAN ECoNoMiC JourNAL: MACroECoNoMiCs JANuArY 2009
C. H w o t n t e M late Att t e
A , - , k -
. O , k
I , . A , .
A M (1890 ) , . T , J
J (1970 ) G (1999 ), , k k -
, . I ,
Table 2Attitudes toward Competition
(1) (2) (3) (4)
M 0.219 0.028 0.045 0.013(0.259 ) (0.183 ) (0.186 ) (0.202 )
Y 0.166 0.129 0.045 0.055(0.350 ) (0.252 ) (0.263 ) (0.262 )
M 0.077 0.186 0.097 0.101(0.308 ) (0.235 ) (0.243 ) (0.244 )
L 0.756 0.474 0.475(0.296 )** (0.295 ) (0.301 )
M 0.234 0.045(0.163 ) (0.190 )
E 0.075 0.058(0.030 )** (0.028 )**
H q 0.603(0.384 )
T q 0.191(0.334 )
S q 0.198(0.224 )
C 8.590 9.668 9.474 9.069(0.514 )*** (0.260 )*** (0.261 )*** (0.349 )***
O 810 1,288 1,283 1,283 r 2 0.17 0.18 0.18 0.18
N te : T k 2000 WV S I . T G V S . I q . T q g k . T q
, q e, q c . R
*** S 1 .** S 5 .
* S 10 .
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
8/41
VoL. 1 No. 1 185 rAJAN: rENT prEsErVATioN ANd uNdErdEVELopMENT
, .W k z . I 1 T 3,
( , T 2, 3 ) ( 50,000 ) . T . T
Table 3Attitudes toward Competition: The Role o the Opportunity Set and Pr ivileges
(1) (2) (3) (4) (5)
M 0.056 0.044 0.039 0.017 0.050(0.179 ) (0.186 ) (0.185 ) (0.19 ) (0.178 )
Y 0.034 0.030 0.061 0.062 0.046(0.260 ) (0.260 ) (0.261 ) (0.257 ) (0.257 )
M 0.093 0.097 0.058 0.056 0.053(0.247 ) (0.243 ) (0.246 ) (0.238 ) (0.249 )
L 0.393 0.441 0.433 0.454 0.336(0.299 ) (0.304 ) (0.290 ) (0.284 ) (0.293 )
M 0.089 0.042 0.059 0.051 0.100(0.189 ) (0.191 ) (0.185 ) (0.175 ) (0.186 )
E 0.045 0.093 0.107 0.106 0.094(0.035 ) (0.035 )** (0.032 )*** (0.031 )*** (0.041 )**
R 1.155 1.026(0.425 )*** (0.405 )**
R 3 0.156 0.129(0.077 )* (0.078 )
R 0.735 0.497(0.810 ) (0.757 )
R 3 0.109 0.075(0.054 )* (0.056 )
B 0.953 1.679 0.902(0.430 )** (1.427 ) (0.425 )**
B 3 0.206 0.192(0.087 )** (0.087 )**
B 2.929(1.428 )**
B 0.1283 (0.215 )
B 0.2443 (0.096 )**
C 9.650 9.601 9.271 9.433 9.540(0.304 )*** (0.751 )*** (0.258 )*** (0.302 )*** (0.739 )***
O 1,283 1,283 1,283 1,283 1,283
r 2 0.18 0.18 0.18 0.19 0.19
N te : T k 2000 W VS I . R .
*** S 1 .** S 5 .
* S 10 .
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
9/41
186 AMEriCAN ECoNoMiC JourNAL: MACroECoNoMiCs JANuArY 2009
1 . T
. T
- .I 2, -
( 5,000 ) . T q ,
z . T ,
.
D. p v lege an Att t e
I I , ( k , , - ) j q . A , j
. T , . A j ,
. 3I T 3, 3, I
. A , ,
-. I , .
A , k .
O -
( ) - . W
( ), . T - 4 , , - , . B , , , . I j q k j ( , , j ). M k , j q
3 I k S D .
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
10/41
VoL. 1 No. 1 187 rAJAN: rENT prEsErVATioN ANd uNdErdEVELopMENT
k . B - , .I 5, I .
T , -
.E. M t vat n M el
T I . T . F , - . O ,
, k. S , . I
, , -
. B , . T , k -
, I .T -
. T . W ,
j . T j - k ,
, , , ( ). T ,
, - k . T , I
.
II. The Framework
A. G p ct n Techn l gy an En wment
C : , k , k . T - m l , m
k , l k , . I
ASSUMPTION 1: ( ) 0 < < 1, 0 , < 1 ( ) + < 1 ( ) >
I , ( ) -, ( ) . W
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
11/41
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
12/41
VoL. 1 No. 1 189 rAJAN: rENT prEsErVATioN ANd uNdErdEVELopMENT
. S - k , m l . U k , q j k
.
U q , . T k X- ,
, k , . T , I
< 1, , q - k .
N , - (
) - k , ,
. H , - . T q , , .
T , I . I , k , .
D. p e e ence
I ( , , ) . H , - , z . I .
E k q . I z (
), . I , z - ,
. I : , - k , , , .
III. Outcomes Under Various Strategies
L ( q ), . S s q , E - , p - k , C ( . .,
- k ).
A. stat Q
S ( ) , 1 + e + , (1 + e + ) / .
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
13/41
190 AMEriCAN ECoNoMiC JourNAL: MACroECoNoMiCs JANuArY 2009
S , - ms = 1 + e (1 + e + ) / . U q , (ms )() ,
k , k
.4
B k ( ), k . E (ms ) 1() ,
(ms )() 1. F , - , , , q z , = 3 (ms ) 1
() 4 / . T , , . N
, (1 1/ )( ms) 1() ,
(ms ) 1 () (1) (ms ) () 1 .
I , , 3( + ) / 4 3 / (1 + e )4 + 1 (1) . I ,
, .B
, . I -M ,
k ( )
. A . S ,
+ ASSUMPTION 3: a b a b + 1.
1
+ e
N , .
B. pa t al re m : E cat n b t N C m et t n
W , . T . L m E k
l E . S k , . T
4 T k -, . ., (1 + e) / / . B A 2,
> A 1, .
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
14/41
VoL. 1 No. 1 191 rAJAN: rENT prEsErVATioN ANd uNdErdEVELopMENT
q . T (m E ) 1 (l E ) = (m E ) (l E ) 1, m E / l E = / . A , k
q , m E + l E = (1 + e + ) (1 1/ ). F q , l E m E . W
LEMMA 1: The ne cate a e bette a te e cat n e m than n e thetat q , wh le the e cate a e w e . The l g l t may be bette w e e en ng n a amete .
PROOF:S A .
T k j ,
j . T . T k
, . T , ,
. H
1(2) (1 )m l + m 1l a1 b.
T , , (1 ), , m l . C ,
k . S - . H , f
( k ). I ( + 1) k ,
, -
. I q . N , k A 2,
, -z . S q .
E j , - k k . W .
C. pa t al re m:p -ma ket C m et t n b t n E cat n.
W - k , . B ,
. D k
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
15/41
192 AMEriCAN ECoNoMiC JourNAL: MACroECoNoMiCs JANuArY 2009
k k . T (
k ) . S - , ms , ms , ,
. E , l p = / ms .T (l p ) 1, (1 )(l p ) ,
(1 )(l p ) / .
LEMMA 2: The e cate a e bette w th nly -ma ket e m than they a en e the tat q . The l g l t an the ne cate may be bette w e e en ng n a amete .
PROOF:S A .
T , , . A , . T .T , q
- k . I q ( (1 ) ,
q , ), -
- k . W , :
COROLLARY 1: ( ) The l g l t net nc me n e the tat q elat ve th net nc me n e -ma ket e m nc ea e a h ct ve e fc ency, ,nc ea e . ( ) i the e an e = e ch that the l g l t e e the tat q t
-ma ket e m , he e e the tat q t ma ket e m all e > e . i
the e an e
= e
ch that the l g l t e e -ma ket e m t the tatq , he e e -ma ket e m t the tat q all e < e . ( ) i the e a
= ch that the l g l t e e the tat q t -ma ket e m , he e- e the tat q t ma ket e m all < . i the e a = ch that the l g l t e e -ma ket e m t the tat q , he e e - ma ket e m t the tat q all > .
PROOF:S A .
W e ,C 1 ( ) ( ) q .
T , , ,
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
16/41
VoL. 1 No. 1 193 rAJAN: rENT prEsErVATioN ANd uNdErdEVELopMENT
- k .
M q - k . S = l p ms (1) ,
q (3) (l p ) 1 (lp ) . (ms )1(+) (ms )1(+)
T , . C q , k (ms )1(+) / . T . T
- 1/ . S , , k q k . I , , , - k ,
k .T . T
3(ms )1(+) / 4 3(1 ) / 4. T j , .
T , (1 ) / , 1 , ,
j . W - k ,
( ). I , ,
. W , :
COROLLARY 2: () The net nc me the ne cate n e the tat q elat vet the net nc me a te -ma ket e m nc ea e a the elat ve e fc ency
the l g l t , , nc ea e . ( ) The e a
ch that an ne cate w ke e ethe tat q t -ma ket e m all < an -ma ket e m t thetat q all > . ( ) The e an e ch that the ne cate w ke e ethe tat q t -ma ket e m all e< e an -ma ket e m t thetat q all e > e .
PROOF:S A .
A q ,
q . M , , , z . G
- k ,
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
17/41
194 AMEriCAN ECoNoMiC JourNAL: MACroECoNoMiCs JANuArY 2009
, ( ) - , , . T
. T ,
, z .I , k q . W
- k , . T . T
.
Example: L = 0.5, = 0.3, = 36, = 100. I F 1, I , - e,
q q . N , C 1.
D. C m ehen ve re m
N - k , , . S , k , -
. L mC - k k l C . T , k q z , mC = ( / ) l C . A ,
0.850.86
0.870.88
0.890.9
0.91
0.920.930.94
0.950.96
0.970.98
0.991
10.5 11 11.5 12 12.5 13
Number of educated
E f f i c i e n c y o
f o
l i g o p o
l i s
t
Uneducated preferpro market reforms
Uneducated prefer status quo
Figure 1. Preferences of UneducatedStatus Quo versus. Pro-Market Reforms
N te: T = 0.5, = 0.3, = 36, = 100.
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
18/41
VoL. 1 No. 1 195 rAJAN: rENT prEsErVATioN ANd uNdErdEVELopMENT
k , mC + l C = 1. S , 3 / ( + )4 3 / ( + )4 - . T (1/ ) 3 / ( + )4
3 / ( + )4 .LEMMA 3: ( ) The ne cate w ke alway e e c m ehen ve e m t thetat q t a t al e m (that , e the e cat n nly -ma ket e mnly); ( ) The e cate w ke e e c m ehen ve e m t nly e cat ne m b t e e -ma ket e m t c m ehen ve e m . H e e encebetween the tat q an c m ehen ve e m a amete ec fc. ( ) Thel g l t e e -ma ket e m t c m ehen ve e m . Th , he e-
e the tat q t -ma ket e m ( ee Lemma 2), he e e the tat qt c m ehen ve e m .
PROOF:O .
T k - . B ,
( -k ) (
k - k ). T - k . F
, .
COROLLARY 3: ( ) An nc ea e n the n mbe the e cate , e, a ec ea en the e fc ency the nc mbent ct n techn l gy , , nc ea e the e cat-e net nc me m c m ehen ve e m elat ve t ma nta n ng tat q . ( )The e a level e v ce ct v ty ** ch that, cete a b , the e cate
e e the tat q t c m ehen ve e m when < **, - q > **.
PROOF:S A .
I , - k (
). F , . F , , ,
q .
Example: L = 0.5, = 0.3, = 36, = 100. I F 2, I , e,
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
19/41
196 AMEriCAN ECoNoMiC JourNAL: MACroECoNoMiCs JANuArY 2009
( q ) - q ( ). I , , = 0.9
e = 12, 11.25 q , 19.75 - k , 22.75 , 64.75 .
I , - . I , I - , I .
IV. Electoral Choice and Reform Outcomes
A. V t ng an V t ng p we
I ( q )
- , . E , ( ) .
A j - - . I
( . ., ) q , - . A k
.E t , t = (w t , n t ) 0, w t
, n t t . I v t = 1, v t / w t 0, v t / n t 0. A ,
, q , , n 0 = > ne0 = e > n 0 = 1, w 0 = 0 < we0 = w < w 0 = W . L .
0.85
0.86
0.870.88
0.890.9
0.91
0.920.93
0.940.95
0.96
0.97
0.98
0.99
1
10.5 11 11.5 12 12.5 13
Number of educated
E f f i c i e n c y o
f o
l i g o p o
l i s
t
Educated prefer status quo
Educated prefer
comprehensive
reforms
Figure 2. Preferences of Educated: Comprehensive Reforms versus Status Quo
N te: T = 0.5, = 0.3, = 36, = 100.
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
20/41
VoL. 1 No. 1 197 rAJAN: rENT prEsErVATioN ANd uNdErdEVELopMENT
B. p e dem c acy
F , , v t = n t y j n jt .I , j ,
. T .
C. im e ect dem c acy
A . M , , - . O , -. T . L - j ( , q , . ., v t
= vet = v t = 1/3). I , f .W j ,
. I , -
q - k . I , ,
. I . T
, - , , , k - k .I , k -
q - . A ,
. A , . T , .
dynam c e ect .T , I z q - , k. B , , . I , . I , k -
k . B , , j , - .
I , q : , ,
k k- .
L ( 5 ) k
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
21/41
198 AMEriCAN ECoNoMiC JourNAL: MACroECoNoMiCs JANuArY 2009
k q .S
, k -
, - . P T 4.
T q - k , . G f , k - k ( , k ).I , - k .
T k q - . A , , , , j
( ). T -
, , , , j .W ( )
q , ( ) - k
Table 4Pre erences o Agents in Di erent Regions( H gh c nt act )
O E U k
A AB SQ PMR CR
PMR SQ EE CR SQ
W CR E PMR
A CB SQ PMR CR
PMR SQ EE CR PMR
W CR E SQ
A BB SQ PMR CR
PMR CR E
E E PMRW CR SQ SQ
A DB SQ PMR CR
PMR CR EE E SQ
W CR SQ PMR
N te: SQ = S q ; PMR = P - k ; E = E ; CR = C .
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
22/41
VoL. 1 No. 1 199 rAJAN: rENT prEsErVATioN ANd uNdErdEVELopMENT
q . C 2 3 e. W - , . F
, = 0.5, = 0.3, = 36, = 100, - 1, F 3 ( F
1 F 2 ). T 4 k .
T a e n the tat -q .L ( ) ( A F 3 ).
B , , q . A
, , , - k . T k - k - q ,
( ) - k .I , j (
), ( ), - k ( ) q .
H , q j - , q .
pa t al e m .I ( B F 3 ), - k -
q , q . T j - k q (
Figure 3. Reform Outcomes
N te: T = 0.5, = 0.3, = 36, = 100.
0.85
0.86
0.87
0.88
0.89
0.9
0.91
0.92
0.93
0.94
0.95
0.96
0.97
0.98
0.99
1
10.5 11 11.5 12 12.5 13
Number of educated
E f f i c i e n c y o
f o
l i g o p o
l i s t
Pro-market
reforms
No reforms
A
B
C
D
Pro-market
reforms
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
23/41
200 AMEriCAN ECoNoMiC JourNAL: MACroECoNoMiCs JANuArY 2009
) - q
( ).B -
, - k -
. T , - - k
j
q .I q - , q - , -
- k q ( C F 3 ).
A , q - k , k . P - k , , .
F ,
( D F 3 ), q - k q . N
j - , - C ( , , ).
T q , I k . T , k
. T k . I , .
A T 5 , A,
B, C, - k D ( , , q ). M , - k k
F 3. T , C 2 C 3 , , :
LEMMA 4: ( ) E cat n e m neve take lace; ( ) F any e, the e a = e, ch that -ma ket e m take lace, they w ll take lace all < e; ( )F any , the e an e = e, ch that -ma ket e m take lace, they w lltake lace all e > e.
E k . P , - k k k ( ,
) , .
Table 5Scores Based on Voting Game
S S W
A A SQ 6PMR 7 SQ
E 9CR 8
A C PMR 6SQ 7 PMRE 9
CR 8
A B PMR 6SQ 9 PMRE 8
CR 7
A D SQ 8PMR 7 PMR
E 8CR 7
N te: SQ = S q ; PMR = P k ; E = E ; CR = C .
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
24/41
VoL. 1 No. 1 201 rAJAN: rENT prEsErVATioN ANd uNdErdEVELopMENT
F , q - k F 3, k
k . I , , - , , .
T -, q , - k . P , - k ,
q q .
The d fc lty C m ehen ve re m .L 4 k - q . I ,
k , . T .
I , , , , . T k
q .
T . T , . T , k
. I q ,
, . I j , . T
.S , -
k . B ( . ., ),
, . B - - -
,
. T , , , . T k
( ) - . A - -
k k , , , j . R z .
A , , . T ,
, , , . N
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
25/41
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
26/41
VoL. 1 No. 1 203 rAJAN: rENT prEsErVATioN ANd uNdErdEVELopMENT
k - . I ,
k .W ? N , -
, k , . T ( ) .
The r e the B ge e .I
q - k . T
LEMMA 6: ( ) i ( + ) > 1 /2 an (e 1) > (1 )ms ( + 1 e) / ,whe e m s efne ea l e the n mbe e cate engage n ct n, the
tat q w ll eva l nt l the wealth the e cate excee hal the t talwealth, a te wh ch -ma ket e m w ll be enacte . ( ) The e an * chthat the c n t n n ( ) a e at fe > *. ( ) An nc ea e n lea t annc ea e n *.
PROOF:A .
T L 6 ( ) L 5 . T 6 ( ) ( , > 0.5). L 6 ( )
q , , k .T q
j , - k . T L 6 ( )
, , , . T ,
; , k , .
LEMMA 7: i + > 1 /2 an (e 1) (1 ) ms ( + 1 e) / , an 3(e 1) (e + 1)4 / 3(e + 1) (e + + 1)4 + > 1 , then the even-t al tc me w ll be a e ve n sect n iVC, el e the tat q w ll eva l .
PROOF:S A .
T L 7 L 5 L 6 . T
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
27/41
204 AMEriCAN ECoNoMiC JourNAL: MACroECoNoMiCs JANuArY 2009
, . B
j , k ,
. T S IVC.I , j
q k . W , L 7 : I + > 0.5 0.5,
S IVC.
d c n: pl t c acy ve im e ect dem c acy .R , k
. H , (L 5 ), . I , q
, ;
, q - k. N - k -
( ) . D z , , .
S , A, , q - q . H ,
(L 6 ), - k . T -
. I k k .Tk , ,
k z
k. I k , A, j - . B , , j - k . B z ( , ), .
V. Robustness, Extensions, and Related Literature
T , ( ) -( , , ),
, .M , , k ( )
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
28/41
VoL. 1 No. 1 205 rAJAN: rENT prEsErVATioN ANd uNdErdEVELopMENT
, ( ) k ,
( ) j .
I , q . T
, ( ), . P
.
A. A d e ent set C n t t enc e an a d e ent set re m
C , , , k .
S ( ), q -( ), q ( ). S k
( , z ) . S
( ) .
P , q q k , , . T
. A , ,
, . T
. T . S ,, q ,
. S q .F q q j .
B , k , . H , , . N -, , .
T , , - . B - q
( , ) .
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
29/41
206 AMEriCAN ECoNoMiC JourNAL: MACroECoNoMiCs JANuArY 2009
B. C m en at ng T an e
T , - . F ,
- A . T - - k z k k . O ,
- ( q z ).6
I , , .W , -
k . T , , . I - ,
, . I , , ,
. S q A, - k k k (
). M , R j L Z(2000 )
, .
A , , -
( , - - - ). H ,, . W ( T B S C 1997 ),
( A D J L(1998 ) -
C )?
T , , . T ,
. T - I . F , , ,
6 T k z - - q . E -
k - k ( ), j
k . U z - , q k . I z , , ( ), - , .
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
30/41
VoL. 1 No. 1 207 rAJAN: rENT prEsErVATioN ANd uNdErdEVELopMENT
. S , , ( ) .E
. T . T ,
, . I ,
j . A q , -, .
C. Exten n
T . I k .
Alte nat ve i ent t e .I -. I , , ,
, , . C , .I ,
. I , , j ( ,
) ( ). A , , -
, , .
M e ela t c eman an e m t the n t n h t ly .I , , . M
- q -. A , , . A
, . O , , , ,
.O ,
, z . A . E
( , - ), k. G , -
, . O , q
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
31/41
208 AMEriCAN ECoNoMiC JourNAL: MACroECoNoMiCs JANuArY 2009
- k , k . Tq , - k
. T ( ) . N , z
.
D. relate l te at e
re m pa aly .R q F z D R k 1991 S -JW 2000 j ( ) . E , , ,
, ( z ) . O , ,
. T F z R k (1991) , j ,
j ,
. T , q .U k F z R k (1991), ,
. I , , , . H , , q , z , , -
, . I , , ,
. M
A L A , , , q , , ( , k , , A O. K 1974
R H. B 1983, A S R W. V 1998 ).U k F B T V (2000 ),
, j , .
I , k k . H , k
- k , k , . 7
7 P ( , ). T
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
32/41
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
33/41
210 AMEriCAN ECoNoMiC JourNAL: MACroECoNoMiCs JANuArY 2009
A , , -
k .I ,
k j . I , , -
. C ( , , A j
B j L k I 2005, E S k 2003, R j Z2003 , A P z k 2004 )?
M , , j , , . I ,
q . P , q , j
, . 9
R j R 2007 . T -
U S k ( k k , , R L. R R S 1972 R j Z 2003 ). B k , , -, k , . T k
. M , , -
, . F , -, , f
, ( E B T J. M k z 2008 ), k
. F , j . C , -
, . T k
9 T q f ( , , A R k 1994 ). T ,
. M , . O , q
, , I q , q
. A , q , q .
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
34/41
VoL. 1 No. 1 211 rAJAN: rENT prEsErVATioN ANd uNdErdEVELopMENT
, .
VI. Discussion and Conclusion
W z , q k . T k -
. T k j , . S k z -
k , k z k . W ( T P G T
2002, 2005 ), . I ,
f
.T k f
. E ,
. T q .I
q q , k j k . S k, k
, - . 10 N ,
, , - -
.
A. Whe e Ha All the E cat n G ne?
M -. L P 2001 k q : W
? H , - ,
k . O k
j - . A . P
10 O , k k. I , - q , k , k ( , , E 2006 R H R k
2003 ).
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
35/41
212 AMEriCAN ECoNoMiC JourNAL: MACroECoNoMiCs JANuArY 2009
, , k . N
.
A q . I , k q q . I ( ,
) . I
, P k k . 11 A
- q -, .A ,
- ( B j 2007 q ), G . (2004 )
q . P
( - f ) ( ). P
( . ., k k k ). P A . (2005 ) US
, , , . M ,
k . I ,
.
B. C ncl n
A k . T
z k . N , , ,
,
. B k , I k
11 I - S -S A , S J , J D O , A S
(2007 ) ( ), k - , . H , .
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
36/41
VoL. 1 No. 1 213 rAJAN: rENT prEsErVATioN ANd uNdErdEVELopMENT
- . C
.W , k , -
, , q - . I , , -
. I , k . R
k k , q ,
.
AppendixPROOF OF LEMMA 1:
T k m E / l E = / . B A 1 ( ) A 2, / > (1 + e) / > ms / , ms , -
k q 1 + e. T , m E / l E > ms / , k , ms < m E > l E . G , q q . A , ,
, , . I k
k - . T (m)(l)
m(m) 1 (l) l(m)(l) 1 = (1 )(m) (l) . S l = k m,k ( ) k , . . . m,
, -( ) (1 ) 3 l m4(m) 1 (l) 1 > 0. B
,
q k ( z - z q ). H , q . H ,
.T ,
, = 0.5, = 0.3, = 36, = 100. L e = 6 = 0.9. T - 1.14 q
3.14 . E 0.87 0.17, . H , = 0.58, = 0.4, -
. I 0.25 0.88 , , 1.78 0.40. T
.
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
37/41
214 AMEriCAN ECoNoMiC JourNAL: MACroECoNoMiCs JANuArY 2009
PROOF OF LEMMA 2:A - k , k (1 1/ )(1 )(l p ) ,
l p = / ms . U q , (1 1/ ) (ms ) 1 () . C ,
(A1) < (1 ). (ms)1(+)
W k < 1. A , 1 > A 1 ( ). F , ms > 1, . S LHS (A1) RHS. T ms > 1: ms = (1 + e)
(1 + e + ) / . S > (( / ) + 1 + e + ) / (1 + e) A 3, ms > (1 + e) 3( / ) / (1 + e + )4 / 3( / ) / (1 + e + ) + 14. U ,
A 2, 1 + e, ms > (1 + e) ( / ( + )).B / ( + ) > 1 /2 (1 + e) > 2, ms > 1.
I - .
PROOF OF COROLLARY 1:C q - k , (1 )(ms )() +
(ms ) 1() (1 1/ ) > (1 ) ( / ms ) (1 1/ ). C , - , ( ). T k
( / ms ) , q (1 )(ms )+ +
(ms )+ 1 (1 1/ ) (1 ) (1 1/ ). D . . . ms , ms ( + ) / ms (1 1/ ) > 0.
B ms . 1 ( L 2 ), q . S ms e , .
PROOF OF COROLLARY 2:C , q - k
(1 ) lp
(A2) a lp
b (lp
) 1
> a b (lp
) 1
. (ms )1(+) T - (A2) , C 2 ( ).
C (A2), , - . . . ,
1 ( + ) m s lp
a l p
b
a
b
c(1 )
d
(ms
)2(+)
(ms
)1(+)
2
l p + c(1 ) d < 0. (ms )1(+)
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
38/41
VoL. 1 No. 1 215 rAJAN: rENT prEsErVATioN ANd uNdErdEVELopMENT
S m s / > 0, l p / < 0, A 3 ( / )l p , q k ( q (A1) ), q . M , k -
: I A 3 q , - (A2)
z , - , q .I , - (A2) - / (ms )1(+) < 1. H , C 2 ( ) .
C (A2), , - . . . e, e
1 ( + ) 1 lp a l pb a b a1 b + c(1 ) d < 0. (ms )2(+) (ms )1(+) e
T l p / e, q k . B q (A1) . M , C 2 ( ), e, C 2 ( ).
PROOF OF COROLLARY 3:T
1 1(A3) (ms ) 1 ()
a1
b <
a
b
a
b
a1
b.
+ +
C , - ms, ms e, , . F , ,
z ms , . S f q - , C 3 ( ).
PROOF OF LEMMA 5:F k , ,
1(1.4) (1 )(m E )(l E ) + (m E ) 1(l E ) a1 b 1 (e + )(m E ) 1 (l E ) a1 b. C , m E = 3 / ( + )4 (1 + e + ) ( 1 1/ ), , , ( + ) 3(e + ) / ( e + + 1)4 1 / 2,
+ 1 / 2 A 2.
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
39/41
216 AMEriCAN ECoNoMiC JourNAL: MACroECoNoMiCs JANuArY 2009
PROOF OF LEMMA 6:T q
e 1 1 (A5)
a
b
a1
b > (1 ) + +
a
b
a1
b
a
b.
ms
ms
ms
C ,
( + 1 e)(A6) (e 1) > (1 ) ms .
N , ms e + 1, - q z . B e 1 A 2, q > 0.5. O , -
, L 6 ( ).
PROOF OF LEMMA 7:A ,
, , q
(e 1) (e + 1)(A7) +
> 1
. ms ms
S ms = e + 1 (e + + 1) / , q.
REFERENCES
Acemoglu, Daron, Simon Johnson, and James A. Robinson. 2001. T C O C -
D : A E I . Ame can Ec n m c rev ew , 91(5): 13691401.Acemoglu, Daron, Simon Johnson, and James A. Robinson. 2005. I FD L -R G . I Han b k Ec n m c G wth , V . 1A, . PA S N. D , 385472. A : N -H .
Aghion, Philippe, Leah Boustan, Caroline Hoxby, and Jerome Vandenbussche. 2005. ES M k I C I H E G . :// . .
. / / _ / 05_ _ . .Alesina, Alberto, and Dani Rodrik. 1994. D P E G . Q a te ly
J nal Ec n m c , 109 (2): 46590.Banerjee, Abhijit. 2007. I M : T N D E . B t n
rev ew, 32(2): 1218.Banerjee, Abhijit, and Lakshmi Iyer. 2005. H , I , E P : T
L C L T S I . Ame can Ec n m c rev ew , 95(4): 11901213.Bates, Robert H. 1983. E ay n the p l t cal Ec n my r al A ca . C , MA: C
U P .Benmelech, Efraim, and Tobias J. Moskowitz. 2008. T P E F R -
: E US S U L 19 C . :// . . / . k z/ /U _082607. .
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
40/41
VoL. 1 No. 1 217 rAJAN: rENT prEsErVATioN ANd uNdErdEVELopMENT
Besley, Timothy, and Stephen Coate. 1997. A E M R D .Q a te ly J nal Ec n m c , 112 (1): 85114.
Binswanger, Hans P., and Klaus Deininger. 1997. E A A P D C . J nal Ec n m c L te at e , 35(4): 19582005.
Bourguignon, Franois, and Thierry Verdier. 2000. O , D , I q G . J nal devel ment Ec n m c , 62 (2): 285313.
Caselli, Francesco, and Nicola Gennaioli. F . E P A I - R . Q a te ly J nal Ec n m c .
Dixit, Avinash, and John Londregan. 1998. I , T , E R P -. Q a te ly J nal Ec n m c , 113 (2): 497529.
Easterly, William Russell. 2001. The El ve Q e t G wth: Ec n m t A vent e an M a -vent e n the T c . C , MA: MIT P .
Easterly, William Russell. 2006. The Wh te Man B en: Why the We t E t t A the re t Have d ne M ch ill an L ttle G . N Y k: P P .
Engerman, Stanley L., Elisa V. Mariscal, and Kenneth L. Sokoloff. 2002. T E S - I A : 18001945. U .
Engerman, Stanley L., and Kenneth L. Sokoloff. 2003. I N -I E - E D . N B E R W k P
9989.Engerman, Stanley L., and Kenneth L. Sokoloff. 2005. C , I q , L -R P D . N B E R W k P 11057.
Fernandez, Raquel, and Dani Rodrik. 1991. R R : S Q B P I -S U . Ame can Ec n m c rev ew , 81(5): 114655.
Galor, Oded, and Omer Moav. 2006. D H -K : A T D CS . rev ew Ec n m c st e , 73 (1): 85117.
Galor, Oded, Omer Moav, and Dietrich Vollrath. F . I q L O , E H C P I , G D . rev ew Ec -n m c st e .
Glaeser, Edward L. 1999. L C . J nal u ban Ec n m c , 46 (2): 25477.Glaeser, Edward L., Rafael La Porta, Florencio Lopez-de-Silanes, and Andrei Shleifer. 2004. D
I C G ? J nal Ec n m c G wth , 9(3): 271303.Hausmann, Ricardo, and Dani Rodrik. 2003. E D S -D . J nal
devel ment Ec n m c , 72 (2): 60333.Hoff, Karla. 1996. M k F D W : A P E -
I . p l t c an s c ety , 24 (4): 41132.Hoff, Karla. 2003. P I D : A V E H . W l
Bank re ea ch ob e ve , 18(2): 20526.Jacobs, Jane. 1970. The Ec n my C t e . N Y k: V B k .Johnson, Simon, Jonathan David Ostry, and Arvind Subramanian. 2007. T P S -
G A : B k C . I M F W kP 07/52.
Krueger, Anne O. 1974. T P E R -S k S . Ame can Ec n m c rev ew , 64 (3): 291303.
Marshall, Alfred. 1890. p nc le Ec n m c . L : M .North, Douglass C., and Barry R. Weingast. 1989. C C : T E
I G P C S -C E . J nal Ec n m c H t y , 49 (4): 80332.
Persson, Torsten, and Guido Tabellini. 2000. p l t cal Ec n m c : Ex la n ng Ec n m c p l cy .C , MA: MIT P .
Persson, Torsten, and Guido Tabellini. 2005. The Ec n m c E ect C n t t t n . C ,MA: MIT P .
Pritchett, Lant. 2001. W H A E G ? W l Bank Ec n m c rev ew , 15 (3):36791.
Przeworski, Adam. 2004. T L I : A I P C E D -? E ean J nal s c l gy , 45(2): 16588.
Rajan, Raghuram G., and Rodney Ramcharan. 2007. L I U S P E F U . U .Rajan, Raghuram G., and Luigi Zingales. 2000. T T I q . J nal p bl c Ec -
n m c , 76(3): 52158.Rajan, Raghuram G., and Luigi Zingales. 2003 . sav ng Ca tal m m the Ca tal t . P :
P U P .
-
8/3/2019 Rent Preservation - Persistance of Underdevelopment
41/41
218 AMEriCAN ECoNoMiC JourNAL: MACroECoNoMiCs JANuArY 2009
Rajan, Raghuram G., and Luigi Zingales. 2003 . T G R : T P FD T C . J nal F nanc al Ec n m c , 69 (1): 550.
Ransom, Roger L., and Richard Sutch. 1972. D P C S C W . J nal Ec n m c H t y , 32 (3): 64169.
Shleifer, Andrei, and Robert W Vishny. 1998. The G abb ng Han : G ve nment path l g e an The C e . C , MA: H U P .
Wei, Shang-Jin. 2000. Ec n m c Gl bal zat n: F nance, T a e, an p l cy re m . B j : B - j U P .