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A firm may induce voters or elected politicians to support a policy it favors by suggesting that it is more likely to invest in a district whose voters or representatives support the policy. In equilibrium, no one vote may be decisive, and the policy may gain strong support though the majority...
Persistent link: https://www.econbiz.de/10011378822
We present a dynamic model of the interaction between interest groupsand policymakers, featuringendogenous interest group formation. We show that complicated dynamicpatterns in economicpolicies may arise once interest group formation is taken intoaccount.
Persistent link: https://www.econbiz.de/10011303316
Today’s global world is characterized not only by a high volume ofinternational trade and foreign investment relativeto national income, but also by a changed composition of that tradetowards a greater fraction of trade in inputs andcapital goods and outsourcing of production.. Emphasized is...
Persistent link: https://www.econbiz.de/10011303880
Interest groups are introduced in a spatial model of electoral competition between two political parties. We show that the presence of these interest groups increases the winning set, which is the set of policy platforms for the challenger that will defeat the incumbent. Therefore interest...
Persistent link: https://www.econbiz.de/10011343278
In a democracy, a political majority can influence both the corporategovernance structure and the return to human and financial capital.We argue that when financial wealth is sufficiently diffused, thereis political support for a strong governance role for dispersed equitymarket investors, and...
Persistent link: https://www.econbiz.de/10011346462
followed by financial crises. We explain this variation as the outcome of lobbying interests capturing the reform process. Even … by more leveraged entrepreneurs, protecting more established producers. As a result, lobbying may deliberately worsen …
Persistent link: https://www.econbiz.de/10011348359
This paper studies the internal organizational design of politicalinstitutions in presence of lobbying. We consider a … of the feasible policies.In this context, we investigate the impact of lobbying on the optimalallocation of political … as the choicebetween two alternative legislative rules: open versus closed rule.We show that, in presence of lobbying …
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