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Democracy and Volatility: Do Special-Interest Groups Matter?

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Author Info

  • Bonnie Wilson

    ()
    (Department of Economics, Saint Louis University)

  • Dennis Coates

    ()
    (Department of Economics, University of Maryland Baltimore County)

  • Jac Heckelman

    ()
    (Department of Economics, Wake Forest University)

Abstract

This paper empirically explores the relationship between special-interest groups and volatility, with focus on the interplay between groups and democracy and on the impact of groups on policy volatility. We find that countries with more interest groups are characterized by less policy volatility; that the number of interest groups has a direct impact on growth volatility, in addition to an indirect impact through policy volatility; and that interest groups appear to be a channel through which democracy impacts both policy volatility and growth volatility.

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File URL: http://jcsb.slu.edu/repec/slu/democ_vol_p.pdf
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File Function: Revised version, 2010
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Bibliographic Info

Paper provided by Saint Louis University, Department of Economics in its series Working Papers with number 2008-01.

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Length: 29 pages
Date of creation: Aug 2008
Date of revision: Aug 2009
Handle: RePEc:slu:wpaper:2008-01

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Related research

Keywords: special interest groups; volatility; democracy;

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Cited by:
  1. Grigoli, Francesco & Mills, Zachary, 2011. "Do high and volatile levels of public investment suggest misconduct ? the role of institutional quality," Policy Research Working Paper Series 5735, The World Bank.
  2. Berggren, Niclas & Bergh, Andreas & Bjørnskov, Christian, 2012. "The growth effects of institutional instability," Journal of Institutional Economics, Cambridge University Press, vol. 8(02), pages 187-224, June.
  3. Dennis Coates & Jac Heckelman & Bonnie Wilson, 2011. "Special-interest groups and growth," Public Choice, Springer, vol. 147(3), pages 439-457, June.

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