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Special Interest Groups and Economic Policy in Democratic Societies

Theoretical Foundations and Empirical Evidence


Rolf Daxhammer

Special Interest Groups are an integral part of economic policy decision making in democratic societies. In this book, they are to be discussed in terms of their impact on a country's economic performance. To do so the concept of a market for special privileges has to be introduced in order to develop an explicit demand/supply framework encompassing both special interest groups and political decision makers. Thus, the whole range of economists' tools can be applied to a topic that has implications not only for Economics but also for Political Science and Business Administration. The analysis opens the door for a critical assessment of recommendations that are discussed with respect to curbing and channelling the influence of special interest groups on economic policy making.
Contents: Pluralism - Formation of special interest groups (theory of collective action) - Rent-seeking - Market for special privileges (demand/supply) - Endogenous tariff theory - Policy implications.