In 1982, he expanded the scope of his earlier do the job in an make an effort to reveal The Rise and Decline of Nations (1982). He argues that groups like cotton farmers, steel producers, and labor unions have an incentive to sort lobby groups and affect insurance policies of their favor. These guidelines will are generally protectionist, that will damage financial growth; but for the reason that the many benefits of this sort of insurance policies are concentrated, and their expenditures are subtle through the entire total inhabitants, there will be minor general public resistance to them.

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In his final book, Electric power and Prosperity (2000), Olson distinguished among the financial consequences of different types of government, especially, tyranny, anarchy, and democracy. Olson argued that underneath anarchy, a "roving bandit" only has the incentive to steal and wipe out, even though a "stationary bandit"—a tyrant—has an incentive to inspire some degree of economic achievements as he expects to stay in energy very long enough to take pleasure in that achievement. A stationary bandit therefore starts to take on the governmental function of guarding citizens and their property versus roving bandits.

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