Regime change and critical junctures

In this paper we study how a society can transition between different economic and political regimes. When the current regime is elitism, modeled as collection of units land where at each these there member elite peasant. Under democratic regime, citizen whose role to work enjoy full output he produces. At every period with some small probability critical juncture arrives, giving chance for change. Among others, find that wider gap increase number institutions are possible after lower profitability makes equilibria an extractive continues less likely.