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Interest group activity and economic growth: some new evidence from the US states

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  • Ismail M. Cole

Abstract

Empirical studies of the claim that special interest group activity has harmful effects on growth have produced mixed results with limited supportive evidence. This article provides new evidence on the issue in the context of the US states (1975-2004), using the pooled mean group estimator which allows for more flexible assumptions in a dynamic panel data framework. The results reveal an inverted U-shaped relationship in which the activity is, in fact, harmful for long-term state growth but only after a certain threshold level of activity is reached. Also, the short-run growth effects, not considered by previous studies, were found to be significant.

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  • Ismail M. Cole, 2015. "Interest group activity and economic growth: some new evidence from the US states," Applied Economics Letters, Taylor & Francis Journals, vol. 22(10), pages 825-829, July.
    • Handle: RePEc:taf:apeclt:v:22:y:2015:i:10:p:825-829
    DOI: 10.1080/13504851.2014.980567
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    Cited by:

    1. Theresa Hager, 2020. "Special Interest Groups and Growth: A Meta-Analysis of Mancur Olsons Theory," ICAE Working Papers 116, Johannes Kepler University, Institute for Comprehensive Analysis of the Economy.

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