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Interest Groups, Democracy, And Policy Volatility

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  • Jac C. Heckelman
  • Bonnie Wilson

Abstract

type="main" xml:id="coep12118-abs-0001"> Democratic polities appear to produce more stable policy than do autocracies. In this paper, we explore a potential source of the policy stability observed in democracies: special-interest groups. We find that interest groups are associated with greater stability in some measures of policy and that groups mediate the stabilizing impact of democracy on policy. We also find that the impact of interest groups on policy volatility depends on the degree of polarization in a society. (JEL P16, O43, D7)

Suggested Citation

  • Jac C. Heckelman & Bonnie Wilson, 2016. "Interest Groups, Democracy, And Policy Volatility," Contemporary Economic Policy, Western Economic Association International, vol. 34(2), pages 223-233, April.
    • Handle: RePEc:bla:coecpo:v:34:y:2016:i:2:p:223-233
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    File URL: http://hdl.handle.net/10.1111/coep.2016.34.issue-2
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    JEL classification:

    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • D7 - Microeconomics - - Analysis of Collective Decision-Making

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