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    This document summarizes a model of a predatory state. The model shows that a predatory state, whose rulers extort taxes for personal gain rather than public welfare, can result in lower economic output and public welfare than either organized banditry or anarchy. While a predatory state may provide some public goods like protection, the taxes imposed to fund these goods can actually reduce public welfare. The model also examines interactions between bandits and the state, and how expectations of future taxes can extend conclusions about predatory states to a dynamic setting.

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    Politics

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    A Model of a Predatory State

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    This document summarizes a model of a predatory state. The model shows that a predatory state, whose rulers extort taxes for personal gain rather than public welfare, can result in lower economic output and public welfare than either organized banditry or anarchy. While a predatory state may provide some public goods like protection, the taxes imposed to fund these goods can actually reduce public welfare. The model also examines interactions between bandits and the state, and how expectations of future taxes can extend conclusions about predatory states to a dynamic setting.

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    12 views2 pages

    A Model of A Predatory State

    Uploaded by

    nicasioaquino
    This document summarizes a model of a predatory state. The model shows that a predatory state, whose rulers extort taxes for personal gain rather than public welfare, can result in lower economic output and public welfare than either organized banditry or anarchy. While a predatory state may provide some public goods like protection, the taxes imposed to fund these goods can actually reduce public welfare. The model also examines interactions between bandits and the state, and how expectations of future taxes can extend conclusions about predatory states to a dynamic setting.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    5/31/2016

    AModelofaPredatoryState

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    AModelofaPredatoryState

    AuthorInfo
    BoazMoselle
    BenPolak

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    Abstract

    Abstract

    Weprovideamodelofaprimitivestatewhoserulersextort
    taxesfortheirownends.This'predatory'statecanresultin
    lowerlevelsofbothoutputandpopularwelfarethaneither
    organizedbanditryoranarchy.Thepredatorystatemayprovide
    publicgoods,suchasprotectionorirrigation,andhencemay
    superficiallyresembleacontractualstate.But,theabilityto
    providesuchgoodscanactuallyreducepopularwelfareafter
    allowingfortaxchanges.Wecomparetherevenuesraisedby
    taxationwiththosefrombanditrytogetanideawhenprimitive
    statesarelikelytoemerge.Wethenconsiderinteractions
    betweenbanditsandthestate.'Corrupt'sidedealsarebadfor
    outputandpopularwelfare,butgoodforrevenue.Eveninthe
    absenceofsuchcollusion,theexistenceofa'mafia'andofthe
    statecanbegoodforeachother.Competitionbetween
    organizedcrimeandthestate,however,typicallyreduces
    popularwelfareandpushesthevolumeofbanditryclosetoits
    anarchylevel.Finally,weextendthebasicmodeltoallowthe
    populacetoformexpectationsoftaxsetbyalonglivedking.
    Ourrelativelypessimisticconclusionsaboutpredatorystates
    extendtothisdynamicsetting.

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