Institutions, Political Cycles and Corruption : Essays on Dynamic Political Economy of Government

Sammanfattning: This thesis consists of three essays in Political Economy:“China’s Political Business Cycle” uncovers the fact that the timing of China’s business cycle correlates to the timing of the Communist Party’s Congress and constructs a theory to explain the mechanism of the political business cycle. An empirical test of the theory derives a result consistent with the predictions of the theory.“A Theory of Dynastic Cycle” provides a politico-economic theory to explain the mechanism of the dynastic cycle, a repeating pattern in China’s theory. The core of the theory is the ruler’s trade-off between the political account and the economic account in choosing a successor.“A Politico-Economic Theory of Corruption in Non-Democracy” investigates the ruler’s incentive to have corrupt agents. The key point is that a corrupt agent has a bad reputation and is less likely to replace the incumbent ruler. The major implication is that unless there is fundamental institutional change, it is hard to eradicate corruption in non-democracy.