Political Competition, Policy and Growth: Theory and Evidence from the US
2010 (English)In: The Review of Economic Studies, ISSN 0034-6527, E-ISSN 1467-937X, Vol. 77, no 4, 1329-1352 p.Article in journal (Refereed) Published
This paper develops a simple model to analyse how a lack of political competition may lead to policies that hinder economic growth. We test the predictions of the model on panel data for the US states. In these data, we find robust evidence that lack of political competition in a state is associated with anti-growth policies: higher taxes, lower capital spending, and a reduced likelihood of using right-to-work laws. We also document a strong link between low political competition and low income growth.
Place, publisher, year, edition, pages
2010. Vol. 77, no 4, 1329-1352 p.
Economics and Business
IdentifiersURN: urn:nbn:se:su:diva-49455DOI: 10.1111/j.1467-937X.2010.00606.xISI: 000281000100004OAI: oai:DiVA.org:su-49455DiVA: diva2:378186
authorCount :32010-12-152010-12-142013-01-28Bibliographically approved