Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7243524 | Journal of Economic Behavior & Organization | 2014 | 12 Pages |
Abstract
I exploit a unique historical event to explore the causal relationship between individual wealth and posterior political power. Shortly after the founding of Buenos Aires, plots of land in the outskirts of the city were randomly assigned to all heads of household that participated in the expedition. Using this random allocation of land as a source of exogenous variation in individuals' wealth, I find that wealth causes political power. I also explore possible mechanisms and find support for the hypothesis that wealth signals (or improves) ability.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
MartÃn A. Rossi,