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Political Systems and Distortions: An Empirical Study

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  • Nalin, Evald
  • Torstensson, Johan

Abstract

This paper empirically studies why price distortions are more prevalent in some countries than in others. The authors find no significant difference between democracies and dictatorships but frequent regime changes reduce distortions. Political systems (factional-subordinate) that encourage redistributive activities tend to have more distortions. Allowing for different effects of redistributive activities in democracies and dictatorships, there is a positive and significant effect of redistributive activities RDA on distortions in dictatorships. In democracies, 'distortions-destroying' lobbying seems more important since no significant relation between redistributive activities. RDA and distortions can be found. Copyright 1995 by Kluwer Academic Publishers

Suggested Citation

  • Nalin, Evald & Torstensson, Johan, 1995. "Political Systems and Distortions: An Empirical Study," Public Choice, Springer, vol. 84(1-2), pages 163-180, July.
    • Handle: RePEc:kap:pubcho:v:84:y:1995:i:1-2:p:163-80
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    Cited by:

    1. Michael Hoffman, 2005. "Discretion, Lobbying, and Political Influence in Models of Trade Policy," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 8(3), pages 175-188.

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