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Political Regime Change: State Performance vis-a-vis Conflict
, Rajit Biswas
Published in
2017
Volume: 8
   
Issue: 1
Abstract

The present model analyses how the state would provide services when the change of power depends upon the performance of the state. Agents can evaluate state performance based either only on the receipt of government services, or both on the benefit from government services and taxes imposed. With a credible threat of power
change, if the valuation of the government services is low, along with a low fiscal capacity, then it is less probable that this service would be provided. Furthermore, such an allocation is compared with a situation, when there exists a threat of active opposition. Interestingly, that threat does not change the optimum provisioning of
government services (as compared to the previous situation) in the equilibrium.

About the journal
JournalReview of Economics and Institutions
ISSN2038-1344
Open AccessNo