Endogenous Economic Policy And The Structure Of Production: Theory And Evidence
- Topics:
- Organization
- Tags:
- Finance,
- Investment,
- London School Of Economics,
- Model,
- Policy,
- Theory
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Overview: This paper develops and tests a model of electoral competition and campaign contributions. The standard model was extended to consider the implications for factor mobility and hence the structure of production. The model makes two main predictions. First, countries with more capital stock tend to implement more pro-capital policies. Second, countries with more pro-capital policies tend to specialise in capital-intensive goods. These predictions of the model are confirmed using data on cross-state differences in policies and economic outcomes in India.
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Format: PDF | Size: 780KB | Date: Sep 2003 | Pages: 29
