Bellettini, Giorgio; Ceroni, Carlotta Berti; Prarolo, … - In: Journal of the European Economic Association 12 (2014) 3, pp. 641-671
We use a political economy model of Schumpeterian growth with entry to investigate how an incumbent politician can strategically use the level of red tape to acquire incumbency advantage. By setting sufficiently high red tape, the politician induces the incumbent firm in the intermediate sector...