Towards a political economy of industrial organization: empirical regularities from deregulation

Arbeitspapier

This paper argues that the study of policy incidence in industrial organization needs to take the endogeneity of government into account. The point is made by investigating whether political considerations are important in terms of understanding the causes and effects of deregulation using data provided by the OECD. In particular, we address two interrelated questions: (i) do political and institutional factors matter in a systematic way in terms of the decision to deregulate, and (ii) if so, what does this imply in terms of the policy incidence of deregulation. Our results indicate that political considerations do matter. Most importantly, by introducing political and institutional variables into the empirical analysis of policy incidence, we find that policy conclusions are substantially different from an analysis that treats political factors exogenously. We conclude that the evidence is suggestive of the claim that a full understanding of the effect of government intervention in the marketplace implies a closer integration of political economy with industrial organization.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: WZB Discussion Paper ; No. FS IV 01-17

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models ; Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection ; Positive Analysis of Policy Formulation and Implementation ; Legal Monopolies and Regulation or Deregulation ; Economics of Regulation ; Telecommunications
• Subject: Deregulation ; Political Economy ; Mobile Telecommunications ; Simultaneity Bias ; OECD ; Deregulierung ; Politische Ökonomie ; Mobilfunksindustrie ; Simultaneität ; OECD

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Duso, Tomaso ; Röller, Lars-Hendrik
• Event: Veröffentlichung
• (who): Wissenschaftszentrum Berlin für Sozialforschung (WZB)
• (where): Berlin
• (when): 2001

Further information

• Handle: http://hdl.handle.net/10419/51022
• Last update: 10.03.2025, 11:42 AM CET