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Special Interest Groups and Economic Growth in the United States

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  • Oguzhan Dincer

    ()
    (Department of Economics, Illinois State University, Normal, IL 61790-4200, USA.)

Abstract

Using a direct measure of special interest group (SIG) strength from Thomas and Hrebenar, I analyze the effects of SIGs on economic growth across 48 contiguous US states. Thomas and Hrebenar categorize the strength of SIGs in each state into five categories: dominant, dominant/complementary, complementary, complementary/subordinate, and subordinate. I find a negative relationship between the SIG strength and economic growth supporting Olson. Holding everything else constant, the growth rate of median income over a decade is almost 12 percentage points lower in states in which SIGs are dominant than it is in states in which interest groups are complementary/subordinate. The results are robust to endogeneity between economic growth and SIG strength.

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Bibliographic Info

Article provided by Palgrave Macmillan in its journal Eastern Economic Journal.

Volume (Year): 38 (2012)
Issue (Month): 4 ()
Pages: 434-448

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Handle: RePEc:pal:easeco:v:38:y:2012:i:4:p:434-448

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