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Voter Turnout, Regulatory Commitment, and Capital Accumulation: Evidence from the US Telecommunications Sector

  • Dino Falaschetti
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    Voter turnout is frequently cited as gauging a polity's health. The ease with which electoral members can produce political support, however, can retard an economy's productive capacity. For example, while mobile electorates might efficaciously monitor political agents, they may also lack credibility when committing to regulatory policies. Consequently, a "healthy" polity's economy may rest at an inferior discretionary equilibrium. I find evidence for this hypothesis by relating voter turnout to regulated telecommunications capital. Ceteris paribus, local exchange carriers employ relatively little capital in US states that house high turnout electorates. This evidence is remarkably difficult to dismiss as an artifact of endogeneity bias.

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    File URL: http://econwpa.repec.org/eps/mic/papers/0311/0311002.pdf
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    Paper provided by EconWPA in its series Microeconomics with number 0311002.

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    Length: 49 pages
    Date of creation: 16 Nov 2003
    Date of revision:
    Handle: RePEc:wpa:wuwpmi:0311002
    Note: Type of Document - pdf; prepared on WinXP; pages: 49
    Contact details of provider: Web page: http://econwpa.repec.org

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