Leviathan in a dual economy |
| |
Authors: | Kjetil Bjorvatn |
| |
Institution: | 1. Norwegian School of Economics and Business Administration, Bergen, Norway
|
| |
Abstract: | This paper studies the policies of a leviathan state with an ambition to make money and to stay in power. The economic framework is a developing country characterized by dual markets. Government revenue is raised by taxing the agricultural sector. Part of this revenue is offered to the politically influential urban population in the form of low productive but well paid public sector employment. I calculate the optimal level of rural taxation from the point of view of the Leviathan and investigate its effects on migration, industrialization, public sector employment and urban unemployment in different political scenarios. |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|