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9-ProtectionistBias-2

9-ProtectionistBias-2 - Political Economy of Institutions...

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Click to edit Master subtitle style 3/10/10 Lecture 9: Electoral Rules Grossman and Helpman: A Protectionist Bias in Majoritarian Politics Political Economy of Institutions: Trade
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3/10/10 Democratic Institutions Elections Lobbies Parties Electoral Rules Rogowski: Variations in openness determine electoral rule Today majoritarian systems lead to protectionism
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3/10/10 Tyranny of the Majority Consider a small open economy free trade is socially optimal Mayer direct election skewness in the distribution of factors positive tariff wins election Grossman and Helpman QJE 2005 voters vote for legislators legislators vote over policy
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3/10/10 Argument: Small open economy 3 districts, 1,2,3 each district sends a single representative to the legislature MAJORITARIAN SYSTEM Suppose 1/3 of population lives in each district. no district is stronger or bigger than any other Suppose each district produces a single
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3/10/10
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