This website uses third party cookies to improve your experience. If you continue browsing or close this notice, you will accept their use.

Power Struggles and the Natural Resource Curse

27 April 2016 at 12:00 PM - 1:30 PM

Room 104, Campus on Viale Romania, 32

Speaker: Francesco Caselli, LSE

Abstract:  Empirical evidence suggests that the natural-resource curse operates through the behavior
of the political elite, yet there are few models that convincingly illustrate the mechanism
at work. I present a model where natural-resource abundance generates power struggles,
thereby increasing the effective discount rate of the governing group. As a result, the elite
makes fewer investments in the long-run development of the country