TY  - JOUR
AU  - Tornell,Aaron
AU  - Lane,Philip R.
TI  - Voracity and Growth
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6498
PY  - 1998
Y2  - April 1998
UR  - http://www.nber.org/papers/w6498
L1  - http://www.nber.org/papers/w6498.pdf
N1  - Author contact info:
Aaron Tornell
Department of Economics
UCLA
405 Hilgard Ave, Bunche Hall #8283
Los Angeles, CA  90095-1477
Tel: 310/794-1686
Fax: 310/825-9528
E-Mail: tornell@econ.ucla.edu

Philip Lane
The Sutherland Centre
Arts Block
Trinity College Dublin
Dublin 2  IRELAND
E-Mail: plane@tcd.ie
AB  - We analyze an economy that lacks a strong legal-political institutional infrastructure an dis populated by multiple powerful groups.  Powerful groups dynamically interact via fiscal process that effectively allows open access to the aggregate capital stock.  In equilibrium, this leads to slow economic growth and a  voracity effect,' by which a shock, such as a terms of trade windfall, perversely generates a more than proportionate increase in fiscal redistribution and reduces growth.  We also show that a dilution in the concentration of power leads to faster growth and a less procyclical response to shocks.
ER  -