Political competition, policy and growth: theory and evidence from the United States

Besley, Timothy ORCID: 0000-0002-8923-6372, Persson, Torsten and Sturm, Daniel ORCID: 0000-0001-6408-8089 (2010) Political competition, policy and growth: theory and evidence from the United States. CEP Discussion Papers (CEPDP1009). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

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Abstract

This paper develops a simple model to analyze how a lack of political competition may lead to policies that hinder economic growth. We test the predictions of the model on panel data for the US states. In these data, we find robust evidence that lack of political competition in a state is associated with anti-growth policies: higher taxes, lower capital spending and a reduced likelihood of using right-to-work laws. We also document a strong link between low political competition and low income growth.

Item Type:	Monograph (Discussion Paper)
Official URL:	https://cep.lse.ac.uk/_new/publications/discussion...
Additional Information:	© 2010 The Author(s)
Divisions:	Economics
Subjects:	H Social Sciences > HC Economic History and Conditions
JEL classification:	D - Microeconomics > D7 - Analysis of Collective Decision-Making > D72 - Economic Models of Political Processes: Rent-Seeking, Elections, Legislatures, and Voting Behavior H - Public Economics > H1 - Structure and Scope of Government > H11 - Structure, Scope, and Performance of Government H - Public Economics > H7 - State and Local Government; Intergovernmental Relations > H70 - General N - Economic History > N1 - Macroeconomics and Monetary Economics; Growth and Fluctuations > N12 - U.S.; Canada: 1913- O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development
Date Deposited:	05 Mar 2024 14:06
Last Modified:	01 Nov 2024 05:00
URI:	http://eprints.lse.ac.uk/id/eprint/121718

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