5-GrossmanHelpman

5-GrossmanHelpman - Political Economy of Institutions:...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Click to edit Master subtitle style 2/22/10 Lecture 5: Lobbying the Government Grossman and Helpman Political Economy of Institutions: Trade
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2/22/10 Democratic Institutions Elections Mayer – Direct Democracy Representative government need money to get elected lobbies need to adopt policies that are popular election Policymakers trade off losses of votes
Background image of page 2
2/22/10 Grossman and Helpman: Government sells policy for money Money buys support and helps win elections But to get money, must cater to special interests Government has to balance these competing concerns.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2/22/10 Protection for Sale Three steps: (1) economic structure, (2) political structure, (3) equilibrium tariffs.
Background image of page 4
2/22/10 Protection for Sale: Economy N goods Each individual owns a unit of labor Some individuals also own some specific factor The number of people who own factor i is The total number of people who own some specific factor is Picture 3 Picture 4
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/21/2010 for the course ECON 330 taught by Professor Iorio during the Spring '10 term at USC.

Page1 / 15

5-GrossmanHelpman - Political Economy of Institutions:...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online