Political Pressure Deflection
Much economic policy is deliberately shifted away from direct political processes to administrative processes --- political pressure deflection. Pressure deflection poses a puzzle to standard political economy models which suggest that having policies to `sell' is valuable to politicians. The puzzle is solved here by showing that incumbents will favor pressure deflection since it can deter viability of a challenger, essentially like entry deterrence. U.S. trade policy since 1934 provides a prime example, especially antidumping law and its evolution.
(This abstract was borrowed from another version of this item.)
|Date of creation:||28 Feb 2004|
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|Publication status:||published, Public Choice, 141, 129-50, 2009|
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