Interest Groups and the 'Rise and Decline' of Growth

35 Pages Posted: 7 Aug 2008 Last revised: 3 Jun 2015

See all articles by Jac C. Heckelman

Jac C. Heckelman

Wake Forest University - Department of Economics

Bonnie Wilson

Saint Louis University - Department of Economics

Date Written: October 2014

Abstract

Interest groups are known to exert a sclerotic impact on mean growth, `a la Mancur Olson (1982). It is unknown, however, what (if any) impact groups exert on the volatility of growth - an important hindrance to development. In this paper, we first consider what impact we should expect Olson groups to have on the volatility of growth. We then estimate the relation between groups and growth volatility in a cross-country panel, using System GMM. The findings indicate that groups are associated with growth stability. In addition, the findings suggest that interest groups may be a source of the stability observed in democracies.

Keywords: special-interest groups, volatility, democracy

JEL Classification: P16, O43, D7

Suggested Citation

Heckelman, Jac C. and Wilson, Bonnie, Interest Groups and the 'Rise and Decline' of Growth (October 2014). Southern Economic Journal, Vol. 81, 2014, Available at SSRN: https://ssrn.com/abstract=1202062 or http://dx.doi.org/10.2139/ssrn.1202062

Jac C. Heckelman

Wake Forest University - Department of Economics ( email )

P.O. Box 7505
Winston-Salem, NC 27109
United States
(336) 758-5923 (Phone)
(336) 758-6028 (Fax)

HOME PAGE: http://www.wfu.edu/~heckeljc/jac.htm

Bonnie Wilson (Contact Author)

Saint Louis University - Department of Economics ( email )

3674 Lindell Boulevard
Saint Louis, MO 63108
United States

HOME PAGE: http://https://sites.google.com/a/slu.edu/bonnie_wilson/

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