Political Pressure Deflection
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NBER Working Paper No. 10439
Issued in April 2004
NBER Program(s): ITI
Much economic policy is deliberately shifted away from direct political processes to administrative processes --- political pressure deflection. Pressure deflection poses a puzzle to standard political economy models which suggest that having policies to `sell' is valuable to politicians. The puzzle is solved here by showing that incumbents will favor pressure deflection since it can deter viability of a challenger, essentially like entry deterrence. U.S. trade policy since 1934 provides a prime example, especially antidumping law and its evolution.
Published: James Anderson & Maurizio Zanardi, 2009.
"Political pressure deflection,"
Public Choice,
Springer, vol. 141(1), pages 129-150, October.
This paper is available as PDF (623 K) or via email.
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