Journal Article

Political Competition, Policy and Growth: Theory and Evidence from the US

Timothy Besley, Torsten Persson and Daniel M. Sturm

in The Review of Economic Studies

Published on behalf of Review of Economic Studies Ltd

Volume 77, issue 4, pages 1329-1352
Published in print October 2010 | ISSN: 0034-6527
Published online October 2010 | e-ISSN: 1467-937X | DOI: http://dx.doi.org/10.1111/j.1467-937X.2010.00606.x
Political Competition, Policy and Growth: Theory and Evidence from the US

Show Summary Details

Preview

This paper develops a simple model to analyse 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 rightto- work laws. We also document a strong link between low political competition and low income growth.

Journal Article.  9500 words.  Illustrated.

Subjects: Economics

Full text: subscription required

How to subscribe Recommend to my Librarian

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.