The Olson ratio and indirectly endogenous rent

Public Choice - We consider an economy where the rent value depends indirectly on value-adding investment of agents (thus indirectly endogenous) and the win-probability is a function of rent...     

Chinese democracy: The lessons of failure

China's experiments with democracy in this century were few in number, short in duration, and limited in their democratic characteristics. Democratic institutions malfunctioned in numerous ways. Nine sets of causes for the failure of Chinese democracy can be suggested: ideology, internal and external war, military intervention, Chinese political culture, underdevelopment, a peasant mass, flaws in the design of Chinese constitutions, moral failures by democratic politicians, or the lack of transactional benefits for military‐based elites in the process of democratic transition. Each of these factors is reviewed critically with an eye to its possible lessons.     

The political economy of the peace dividend

We develop a model of the peace dividend and use it to predict the fiscal consequences of a reduction in the demand for military spending. The model is based on the assumption that the political process responds to political demands and costs in a way that maximizes net political benefits. The predictions of our model on how a peace dividend will be allocated over nonmilitary spending, tax relief, and deficit reduction is tested against the experience of eight major wars in United States history.     

Trends in North Korean foreign policy

North Korea’s foreign policy track record in the post-cold war era is mixed. Most notable setbacks are the diplomatic normalization between the Soviet Union (now Russia) and South Korea; the reversal of its UN policy that paved the way for the simultaneous admission of the two Korean states to the world organization; and the diplomatic normalization between China and South Korea. On the credit side of Pyongyang’s diplomatic ledger are changes in its relations with Tokyo and Washington. While tangible results have yet to materialize, particularly in North Korea-Japan relations, the groundwork has nonetheless been laid for significant improvement. North Korea’s suspected nuclear weapons development program has played a major role in the unfolding of its relations with the United States. Conceptually, North Korean foreign policy can be explained in terms of its quest for three interrelated goals: security, legitimacy, and development. In the post-cold war era security appears to have emerged as the most important of the three goals. North Korea is at a crossroads. The choices it makes in foreign policy will determine not only the direction of its domestic policy but, ultimately, the survival of the regime itself. The external players in Seoul, Washington, Tokyo, Beijing, Moscow, and Vienna (the IAEA) have varying degrees of leverage over Pyongyang’s policy as well.