3: Origins of the State: Olson

Question 1

What is Olsons theory on the origin of states?

Answer 1

Governments are stationary bandits

Question 2

What are roving bandits?

Answer 2

Move and therefor steal everything they can

Question 3

What are stationary bandits?

Answer 3

Strategize for long-term results (may even offer protection and public goods)

Question 4

How does a dictator decide on a tax rate?

Answer 4

Maximizing revenue

Question 5

How does a dictator decide on investing in public goods?

Answer 5

Marginal cost = her marginal revenue

Question 6

How do democrats differ from dictators concerning tax rate and investments in public goods?

Answer 6

Have to consider interests of 50% (depends on the system) of citizens
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