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Political Price Cycles in Regulated Industries :, Theory and Evidence, Claudio Paiva, Rodrigo Moita

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Abstract
This paper develops a model of political regulation in which politicians set the regulated price in order to maximize electoral support by signaling to voters a pro-consumer behavior. Political incentives and welfare constraints interact in the model, yielding an equilibrium in which the real price in a regulated industry may fall in periods immediately preceding an election. The paper also provides empirical support for the theoretical model. Using quarterly data from 32 industrial and developing countries over 1978-2004, we find strong statistical and econometric evidence pointing toward the existence of electoral price cycles in gasoline markets
Table Of Contents
""Contents""; ""I. INTRODUCTION""; ""II. BACKGROUND""; ""III. A MODEL OF A POLITICAL PRICE CYCLES IN A REGULATED INDUSTRY""; ""IV. EMPIRICAL EVIDENCE""; ""V. CONCLUDING REMARKS""; ""Appendix 1. List of Countries Included in the Empirical Work""; ""REFERENCES""
Language
eng
Literary Form
non fiction
Note
"November 2006."
Physical Description
1 online resource (24 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781452758206

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