Determinants of Interest Group Formation
28 Pages Posted: 27 Jul 2007
It is widely recognized that interest groups affect both microeconomic and macroeconomic outcomes. However, few researchers have attempted to empirically discern the factors that contribute to interest group activity. This paper provides a test of several theories of group formation in a panel setting. A nation's stability, socioeconomic development, political system, size, and diversity all appear to contribute to interest group formation, as predicted by theory.
Keywords: special interest groups, institutional sclerosis
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