This paper links political support to economic growth. Governments gain support from wealth creation and income redistribution, and the quest for support links differences in economic systems to differences in political systems; inefficiencies persist when they raise support. Depending on how a government obtains it, the quest for support can either lower efficiency and raise the consumption cost of growth or lead to inclusiveness, efficiency, and sustainable growth, a kind of ‘political invisible hand.’ If they do not already exist, however, the incentive to adopt the institutions needed to make this invisible hand work well is likely to be low.
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Carson, R. Inclusiveness, Growth, and Political Support. Eastern Econ J (2020). https://doi.org/10.1057/s41302-020-00171-7
- Political advantage
- Rent seeking