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Partisan Liberalizations. A New Puzzle from OECD Network Industries?

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  • FILIPPO BELLOC and ANTONIO NICITA

Abstract

We investigate the political determinants of liberalization in OECD network industries, performing a panel estimation over thirty years, through the largest and most updated sample available. Contrary to traditional ideological cleavages, we find that right-wing governments liberalize less than left-wing ones. This result is confirmed when controlling for the existing regulatory conditions that executives find when elected. Furthermore, governments' heterogeneity, proportional electoral rules, and European Union membership all show positive and statistically significant effects on liberalization. Our findings suggest that, despite the conventional wisdom, the political-economic rationale behind liberalization paths in network industries is far from being assessed.

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Paper provided by European University Institute in its series RSCAS Working Papers with number 2010/28.

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Date of creation: 29 Jan 2010
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Handle: RePEc:rsc:rsceui:2010/28

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Keywords: Liberalization - Network Industries - Government heterogeneity and Partisanship - Electoral systems - Panel data . JEL Classification D72; L50; P16; C23.;

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