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Does government ideology influence deregulation of product markets? Empirical evidence from OECD countries

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  • Niklas Potrafke

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Abstract

This paper examines how government ideology has influenced deregulation of product markets in OECD countries. I analyze a dataset of non-manufacturing regulation indicators covering energy, transport and communication industries in 21 OECD countries over the 1980-2003 period and employ two different indices of government ideology. The results suggest that government ideology has had a strong influence on the deregulation process: market-oriented governments promoted the deregulation of the energy, transport and communication industries. This finding identifies remarkable differences between leftist and rightwing governments concerning the role of government in the economy and basic elements of political order.
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  • Niklas Potrafke, 2010. "Does government ideology influence deregulation of product markets? Empirical evidence from OECD countries," Public Choice, Springer, vol. 143(1), pages 135-155, April.
    • Handle: RePEc:kap:pubcho:v:143:y:2010:i:1:p:135-155
    DOI: 10.1007/s11127-009-9494-z
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    More about this item

    Keywords

    Product market deregulation; Government ideology; Panel data; D72; L50; P16; C23;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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