gross domestic product per capita. the value of all goods and services produced in a country per year, divided by the size of the population. a common measure of the amount of wealth per person in an economy.
predicts that democracy is more likely to emerge and survive as countries develop and become wealthier
predicts that democracy is more likely to survive as countries develop and become wealthier, but it is not more likely to emerge
the debt accrued by the sovereign (gov't)
credible commitment problem
time-inconsistency problem occurs when a) an actor who makes a promise today has incentive to renege on that promise in the future and b) power is in the hands of the actor who makes the promise, not those who receive expected benefit of promise
the diff betw an asset's value and its short-run opportunity cost. how much value an asset returns in its best case scenario usage compared with its 2nd best case scenario usage. copper mines & oil platforms have 1 use --> LARGE quasi-rents