The Economics of Special Interest Politics: The Case of the Tariff

Study is given to the interaction of politicians and special interest lobbies. A model, applied to the setting of tariffs, indicates the equilibrium levels of redistributive policies such as subsidies, tariffs, taxes, and regulatory decisions. By contributing to political campaigns, special interest...

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Veröffentlicht in:The American economic review 1978-05, Vol.68 (2), p.246-250
Hauptverfasser: Brock, William A., Magee, Stephen P.
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Magee, Stephen P.
description Study is given to the interaction of politicians and special interest lobbies. A model, applied to the setting of tariffs, indicates the equilibrium levels of redistributive policies such as subsidies, tariffs, taxes, and regulatory decisions. By contributing to political campaigns, special interest lobbies generate economic returns, such as revenue generated from higher tariffs for import-competing industries through higher product prices. Lobbies try to maximize net economic returns. Emphasis is placed on Olson's discussion of the voluntary provision of public goods and optimal contributions by lobbies to political campaigns. Politicians weigh the unfavorable association with a lobby against the favorable effects of special interest money. Equilibrium tariff positions are determined for each politician in a political campaign.
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identifier ISSN: 0002-8282
ispartof The American economic review, 1978-05, Vol.68 (2), p.246-250
issn 0002-8282
1944-7981
language eng
recordid cdi_proquest_journals_233043485
source Jstor Complete Legacy; Business Source Complete; Periodicals Index Online
subjects Campaign contributions
Decentralization, Bureaucracy, and Government
Economic models
Economic theory
Economic value
Economics
Elections
Government bureaucracy
Interest groups
Lobbying
Political campaigns
Political elections
Politicians
Politics
Returns
Tariffs
title The Economics of Special Interest Politics: The Case of the Tariff
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