Fabien Prieur

amse seminar

Fabien Prieur

LAMETA
Stochastic petropolitics: The dynamics of institutions in resource-dependent economies
Co-écrit avec
Raouf Boucekkine, Benteng Zou
Lieu

FAC Sch Amphi Mirabeau

Site Schuman - Amphi Mirabeau

Fac de droit et science politique
3, av. Robert Schuman
13628 Aix-en-Provence cedex 1

Date(s)
Lundi 18 janvier 2016| 15:00 - 16:30
Contact(s)

Michel Lubrano : michel.lubrano[at]univ-amu.fr
Antonin Macé : antonin.mace[at]gmail.com

Résumé

We provide an analysis of institutional dynamics under uncertainty by means of a stochastic di erential game of lobbying with two main ingredients. The first one is uncertainty inherent in the institutional process itself. The second one has to do with the crucial role of resource windfalls in economic and political outcomes, shaping lobbying power and adding a second source of uncertainty. We show that the main consequence of the first source of uncertainty is the existence of multiple equilibria with very distinct features. First, we obtain symmetric equilibria that allow the economy to reach almost surely a stable pointwise institutional steady state, which is exactly at the center of the political spectrum. Second, there exist asymmetric equilibria that only show up under uncertainty and do no allow for stochastic convergence to a steady state, meaning that any political position may be reached asymptotically with nonzero probability. With resource revenue-dependent lobbying power, the economy converges to a conservative position in the absence of uncertainty. When accounting for the two sources of uncertainty, we obtain that revenue volatility tends to stabilize institutional dynamics compared to the deterministic counterpart, which weakens the case for Friedman's first law of petropolitics.