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Political Pressure Deflection

Author Info

  • James E. Anderson
  • Maurizio Zanardi

Abstract

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.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 10439.

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Date of creation: Apr 2004
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Publication status: published as James Anderson & Maurizio Zanardi, 2009. "Political pressure deflection," Public Choice, Springer, vol. 141(1), pages 129-150, October.
Handle: RePEc:nbr:nberwo:10439
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Find related papers by JEL classification:
  • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
  • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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  1. Grossman, Gene & Helpman, Elhanan, 1993. "Protection for Sale," CEPR Discussion Papers 827, C.E.P.R. Discussion Papers.
  2. Gene M. Grossman & Elhanan Helpman, 1996. "Competing for Endorsements," Harvard Institute of Economic Research Working Papers 1784, Harvard - Institute of Economic Research.
  3. Anderson, James E., 1993. "Domino dumping II: Anti-dumping," Journal of International Economics, Elsevier, vol. 35(1-2), pages 133-150, August.
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  7. Gallaway, Michael P. & Blonigen, Bruce A. & Flynn, Joseph E., 1999. "Welfare costs of the U.S. antidumping and countervailing duty laws," Journal of International Economics, Elsevier, vol. 49(2), pages 211-244, December.
  8. Kishore Gawande & Usree Bandyopadhyay, 2000. "Is Protection for Sale? Evidence on the Grossman-Helpman Theory of Endogenous Protection," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 139-152, February.
  9. Pinelopi Koujianou Goldberg & Giovanni Maggi, 1997. "Protection for Sale: An Empirical Investigation," NBER Working Papers 5942, National Bureau of Economic Research, Inc.
  10. Dixit, Avinash & Grossman, Gene M. & Helpman, Elhanan, 1997. "Common Agency and Coordination: General Theory and Application to Government Policy Making," Scholarly Articles 3450061, Harvard University Department of Economics.
  11. Enriqueta Aragonés & Zvika Neeman, 1994. "Strategic ambiguity in electoral competition," Economics Working Papers 162, Department of Economics and Business, Universitat Pompeu Fabra, revised Apr 1996.
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  13. Finger, J M & Hall, H Keith & Nelson, Douglas R, 1982. "The Political Economy of Administered Protection," American Economic Review, American Economic Association, vol. 72(3), pages 452-66, June.
  14. James E. Anderson & Thomas J. Prusa, 2001. "Political Market Structure," NBER Working Papers 8371, National Bureau of Economic Research, Inc.
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Cited by:

  1. Tobias D. Ketterer, 2014. "EU Antidumping and Tariff Cuts: Trade Policy Substitution?," Discussion Papers 2014-05, University of Nottingham, GEP.
  2. Nelson, Douglas, 2006. "The political economy of antidumping: A survey," European Journal of Political Economy, Elsevier, vol. 22(3), pages 554-590, September.
  3. Paola Conconi & Carlo Perroni, 2009. "Do Credible Domestic Institutions Promote Credible International Agreements?," ULB Institutional Repository 2013/98549, ULB -- Universite Libre de Bruxelles.

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