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Working paper PITCHIK-99-01
Maria Gallego and Carolyn Pitchik, "An Economic Theory of Leadership Turnover", 1999-09-09
Main Text (application/pdf) (324,461 bytes)

Abstract: In an infinite horizon model, a leader of a group of citizens exerts effort in each period to maintain a public good that enhances the profits of a group of kingmakers. In each period, the kingmakers decide whether to overthrow the leader so as to have a chance of becoming the leader. Consistent with the empirical literature, we find that (1) leadership turnover occurs when the kingmakers\\' expected earnings are low; (2) leadership turnover declines with duration in office; (3) leadership turnover declines as the technology for providing the public good improves; (4) leadership turnover increases as the number of kingmakers increases.

Keywords: coups d\'état, kingmakers, hazard rate, dynamic, stochastic games

JEL Classification: D72;C73;P16

Last updated on July 12, 2012