International union and special interest politics

Our aim is to merge the traditional literature on the determinant of success of special interests with the new political economy of international union. We create a political economy model of allocation of public spending among different interests. We apply it to an environment of International Union, which is viewed as a delegation process of a set of targeted public goods from national to a union-level of decision. Delegated interests are favored at the expense of other groups in the society. Therefore political integration per se can be viewed as a determinant of success of special interest politics.