Perotti, Enrico C; Volpin, Paolo - C.E.P.R. Discussion Papers - 2004
We develop a model of endogenous lobby formation in which wealth inequality and political accountability undermine … from raising capital. They succeed because they can promise larger political contributions than the entrants due to the … unequal, and the political system becomes more accountable. Consistent with these predictions, in a cross-section of 38 …