The sources of protectionist drift in representative democracies
AbstractWe analyze a two country-two good model of international trade in which citizens in each country differ by their specific factor endowments. The trade policy in each country is set by the politician who has been elected by the citizens in a previous stage. Due to a delegation effect citizens generally favor candidates who are more protectionist than they are. The (multiple) one candidate per country-equilibria exhibit a âprotectionist driftâ owing to this delegation effect. In addition, we find an additional source of âprotectionist driftâ which we call the abstention effect. Not only do candidates wish to delegate to more protectionist colleagues, but these more protectionist colleagues who can win election, prefer still more protectionist candidates than themselves. Therefore, they have an incentive to abstain, that is, not run for election. We show that because of this âabstention effectâ there exists a range of electable citizens all of whom are more protectionist than the median voterâs most preferred candidate.
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Bibliographic InfoArticle provided by Elsevier in its journal European Economic Review.
Volume (Year): 49 (2005)
Issue (Month): 7 (October)
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Web page: http://www.elsevier.com/locate/eer
Other versions of this item:
- Didier Laussel & Raymond Riezman, 2001. "The Sources of Protectionist Drift in Representative Democracies," CESifo Working Paper Series 426, CESifo Group Munich.
- Didier Laussel & Raymond Riezman, 2000. "The Sources of Protectionist Drift in Representative Democracies," Econometric Society World Congress 2000 Contributed Papers 1086, Econometric Society.
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