Power, Distributive Conflicts, and Multiple Growth Paths

@article{Paul1997PowerDC,
  title={Power, Distributive Conflicts, and Multiple Growth Paths},
  author={Gilles Saint Paul and Thierry Verdier},
  journal={Journal of Economic Growth},
  year={1997},
  volume={2},
  pages={155-168}
}
This article shows that multiple growth paths may occurin a politico-economic model of endogenous growth. This multiplicityis characterized by the coexistence of the low-tax, low-capital-flightequilibrium and a high-tax, high-capital-flight equilibrium.The likelihood of multiplicity is crucially related to the structureof power in society—namely, it is necessary that the politicallydecisive agents have a greater access to international capitalmarkets than the average in the economy. 

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