Power, Distributive Conflicts, and Multiple Growth Paths

Gilles Saint Paul, Thierry Verdier

Research output: Contribution to journalArticlepeer-review


This article shows that multiple growth paths may occur in a politico-economic model of endogenous growth. This multiplicity is characterized by the coexistence of the low-tax, low-capital-flight equilibrium and a high-tax, high-capital-flight equilibrium. The likelihood of multiplicity is crucially related to the structure of power in society - namely, it is necessary that the politically decisive agents have a greater access to international capital markets than the average in the economy.

Original languageEnglish (US)
Pages (from-to)155-168
Number of pages14
JournalJournal of Economic Growth
Issue number2
StatePublished - Jul 1997


  • Capital flight
  • Growth
  • Multiple equilibria
  • Redistribution
  • Taxation

ASJC Scopus subject areas

  • Economics and Econometrics


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