Income, Influence, and the Limits of Reform: A Political Economy of Elite Capture

RAJAONARISON Haja

This paper develops the Elite Influence Theorem: policy bias towards elites increases with income inequality. A game-theoretic model shows policy favors elites when their income exceeds citizens'. Empirically, a Pro-Elite Policy Index for 40 countries (1995-2020) shows inequality strongly predicts pro-elite outcomes (beta=0.743, p<0.001), highlighting limits to institutional reform.

SSRN

10.2139/ssrn.6430298

https://ssrn.com/abstract=6430298

Political Economy of Governance