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Consistent Estimates of the Impact of Special Interest Groups on Economic Growth

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  • Heckelman, Jac C

Abstract

Empirical studies designed to test Olson's (1982) theory of institutional sclerosis are typically forced to rely upon proxies to measure the ability of special interest groups to engage in redistributive activities, which in turn are expected to hinder economic growth. This note shows that reliance on proxies biases the estimates toward zero. Here, instrumental variable routines are utilized which increase the estimated impact of special interests on the economy. Copyright 2000 by Kluwer Academic Publishers

Suggested Citation

  • Heckelman, Jac C, 2000. "Consistent Estimates of the Impact of Special Interest Groups on Economic Growth," Public Choice, Springer, vol. 104(3-4), pages 319-327, September.
  • Handle: RePEc:kap:pubcho:v:104:y:2000:i:3-4:p:319-27
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    Cited by:

    1. Eiji Yamamura & Haruo Kondoh, 2013. "Government Transparency And Expenditure In The Rent-Seeking Industry: The Case Of Japan For 1998–2004," Contemporary Economic Policy, Western Economic Association International, vol. 31(3), pages 635-647, July.
    2. Axel Dreher & Lars-H. Siemers, 2009. "The nexus between corruption and capital account restrictions," Public Choice, Springer, vol. 140(1), pages 245-265, July.
    3. Yamamura, Eiji, 2011. "Groups and information disclosure: Olson and Putnam Hypotheses," MPRA Paper 34628, University Library of Munich, Germany.
    4. Jac C. Heckelman & Bonnie Wilson, 2014. "Interest Groups and the “Rise and Decline” of Growth," Southern Economic Journal, John Wiley & Sons, vol. 81(2), pages 435-456, October.
    5. Heckelman, Jac C & Wilson, Bonnie, 2023. "Aid, Reform, and Interest Groups," MPRA Paper 118182, University Library of Munich, Germany.
    6. Jac C. Heckelman & Bonnie Wilson, 2021. "Targeting inflation targeting: the influence of interest groups," Public Choice, Springer, vol. 189(3), pages 533-554, December.
    7. Dennis Coates & Jac Heckelman & Bonnie Wilson, 2011. "Special-interest groups and growth," Public Choice, Springer, vol. 147(3), pages 439-457, June.
    8. Daniel Horgos & Klaus Zimmermann, 2009. "Interest groups and economic performance: some new evidence," Public Choice, Springer, vol. 138(3), pages 301-315, March.
    9. Daniel Horgos & Klaus W. Zimmermann, 2010. "It Takes Two to Tango: Lobbies and the Political Business Cycle," Kyklos, Wiley Blackwell, vol. 63(3), pages 383-399, August.
    10. Cole, Ismail M., 2014. "Short- and long-term growth effects of special interest groups in the U.S. states: A dynamic panel error-correction approach," MPRA Paper 54455, University Library of Munich, Germany, revised 02 Mar 2014.
    11. Theresa Hager, 2020. "Special Interest Groups and Growth: A Meta-Analysis of Mancur Olsons Theory," ICAE Working Papers 116, Johannes Kepler University, Institute for Comprehensive Analysis of the Economy.
    12. Eiji Yamamura, 2012. "Groups and information disclosure: evidence on the Olson and Putnam hypotheses in Japan," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 39(6), pages 423-439, May.
    13. Butter, Frank A.G. den & Mosch, Robert H.J., 2004. "Externalities of social capital : the role of values, norms and networks," Serie Research Memoranda 0010, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    14. Jac C. Heckelman & Bonnie Wilson, 2013. "Institutions, Lobbying, and Economic Performance," Economics and Politics, Wiley Blackwell, vol. 25(3), pages 360-386, November.
    15. repec:ebl:ecbull:v:15:y:2007:i:18:p:1-13 is not listed on IDEAS
    16. Bonnie Wilson & Jac Heckelman & Dennis Coates, 2007. "Special-Interest Groups and Volatility," Economics Bulletin, AccessEcon, vol. 15(18), pages 1-13.
    17. Sebastian Coll, 2008. "The origins and evolution of democracy: an exercise in history from a constitutional economics approach," Constitutional Political Economy, Springer, vol. 19(4), pages 313-355, December.
    18. Mehmet, Babacan, 2009. "Lobbying and Growth: Explaining Differences among OECD Countries," MPRA Paper 29734, University Library of Munich, Germany, revised 30 Nov 2009.
    19. Justin Conrad & Hong-Cheol Kim & Mark Souva, 2013. "Narrow interests and military resource allocation in autocratic regimes," Journal of Peace Research, Peace Research Institute Oslo, vol. 50(6), pages 737-750, November.
    20. Taner Güney, 2015. "Environmental sustainability and pressure groups," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(6), pages 2331-2344, November.
    21. Bourassa, Steven C. & Hoesli, Martin & Scognamiglio, Donato & Zhang, Sumei, 2011. "Land leverage and house prices," Regional Science and Urban Economics, Elsevier, vol. 41(2), pages 134-144, March.
    22. Yamamura, Eiji, 2012. "Effects of groups and government size on information disclosure," MPRA Paper 36141, University Library of Munich, Germany.
    23. Jac C. Heckelman, 2007. "Explaining the Rain: The Rise and Decline of Nations after 25 Years," Southern Economic Journal, John Wiley & Sons, vol. 74(1), pages 18-33, July.
    24. Coates, Dennis & Heckelman, Jac C. & Wilson, Bonnie, 2010. "The political economy of investment: Sclerotic effects from interest groups," European Journal of Political Economy, Elsevier, vol. 26(2), pages 208-221, June.

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