Quiz section main point notes on some of the readings Darden corruption is not always detrimental to the government grafed bribery public office for personal gain pork for public officials abuse of authority interesting argument corruption is not always detrimental to the government eliminating the graft would make things fall apart but will not work in the long run because there are limited resources and whistle blowers 3 different types of grafting state weakening state benign state strengthening truth people are too scared why don t we burn down the DMV it is a greater cost to us citizens are the consumers of bureaucracy Special interest groups coal industry EPA should stay shitty Lobbiests have special interests and influence limited information allows agents corruption Moe argues to reduce transaction cost through consolidation bureaucracy Haber Rule by terror leads to a quick democratic transitions less political repression leads to more wide spread property rights with leads to more economic growth which Colmer Different election systems Why might we have majority vs proportional rule in Gov cid 127 miro mega rule larger parties prefer smaller institutions because of exclusive politics to maintain power less competition smaller parties prefer larger institutions so they can be included battle of the sexes game power comes from the way the institutions are set up lock in power Uncertainty creates very high transaction cost elites prefer majority rule cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 Cusack economic structure preferences electoral systems coordination local or national level do we have an economic system where the unions will work with or work against businesses if they work together the it would be cohesive enough don t need a majority system Business owners influence politicians influence political system Business may decide that they can allow proportional voting institutions explain institutions Ziblatt Prusha representation in exchange for taxation Prusha proportional system land vote Prussia s democratic experiment failed Bunce summarizes democracy there are regional effects why can t we apply the same theory to all different place with out taking into consideration the differences and herb how taxation was formed HERB THEORY representation tax theory taxation leads to representation old theory taxation as a form of rent people bargained representation taxes autocrat assemblies his argument leaders allowed representation to secure tax then representation grew people organize state representation take over taxing for legitimate power he looked at the british parliament Different characteristics keep incentivizing us to accept compliance each day instead of trying to change or Weingast remove the regime support II revolution how self informing limits controlled the political elite s Arab Spring example people believe that the gov crossed the line JFK example no civil war very unusual cid 127 military industrial elites did not cross the line both elite s people democracy is better cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 all understand cost benefits institutions in place people have to believe in the institutions Obrian 1 Why did Britain raise taxes steadily from 1660 1815 1 debt military war 3 Why is war important to a country 1 strengthens state though justifying taxes increases nationalism 5 What defines 1 direct tax like income tax 1 why problematic people don t like taxes 2 why they pay enforcement consequences monitoring trust everyone needs to 3 Custom duties imports luxury goods 1 mostly effects wealthy piss off elites inelastic demand as price goes up demand decreases this article is assuming that the political influence of the elites is greater than the working class or 2 3 2 3 4 4 Obrian thinks it has a very high transaction cost of smuggling 5 Excise tax tax consumption 1 not piss off elite s because everyone pays the same tax times of deflation hard to raise consumption revenue lower transaction cost incentive 5 good to have a mix of tax systems 6 Toris wigs kick out king The Founding of the French Third Republic Stephen E Hanson French Third Republic case first stable electoral democracy with universal male suffrage on the European continent its example inspired republicans throughout Europe and beyond long term success of democratic institutions in a country emerging from a century of dictatorship and violence in a geopolitical neighborhood dominated by well established monarchies and with powerful economic and social elites staunchly opposed to democratic ideals After WWII grace was ridiculed for affiliations with Hittler the case was ignored Summed up France under the Third Repub lic stalemate society a system incapable of mak ing a full breakthrough to dynamic capitalism because of its dependence on small scale agriculture combined with its weak executive capacity inefficient bureaucracy and pervasive official corruption cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127