Economic Misconceptions and Growth Destrcution in Resource-abundant Democracies, M.Sc. Thesis Sharif University of Technology ; Nili, Masoud (Supervisor)
Abstract
This paper develops a theoretical model based on economic misconceptions to explain the stylized facts of unsatisfactory long-term economic growth rates. Should the economic agents lack sufficient public understanding of economics, office-seeking politicians can take advantage of the situation and adopt populistic policies to get elected into office. Undermined economic growth is the price society pays for its ignorance. This mechanism is most relevant in democratic resource-abundant countries suffering from weak institutions. That is because natural resource price fluctuations make it more challenging to distinguish politicians’ performance and exogenous economic shocks, translating...
Cataloging briefEconomic Misconceptions and Growth Destrcution in Resource-abundant Democracies, M.Sc. Thesis Sharif University of Technology ; Nili, Masoud (Supervisor)
Abstract
This paper develops a theoretical model based on economic misconceptions to explain the stylized facts of unsatisfactory long-term economic growth rates. Should the economic agents lack sufficient public understanding of economics, office-seeking politicians can take advantage of the situation and adopt populistic policies to get elected into office. Undermined economic growth is the price society pays for its ignorance. This mechanism is most relevant in democratic resource-abundant countries suffering from weak institutions. That is because natural resource price fluctuations make it more challenging to distinguish politicians’ performance and exogenous economic shocks, translating...
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