Interest Groups and the "Rise and Decline" of Growth. (1st October 2014)

• Record Type: Journal Article
• Authors: Heckelman, Jac C.; Wilson, Bonnie
• Is Part Of: Southern economic journal. Volume 81:Number 2(2015)
• Page Start: 435
• Page End: 456
• Publication Date: 2014-10-01
• Subjects: Southern States -- Economic conditions -- Periodicals; Economics -- Periodicals; Economic history; Economics; Southern States; Periodicals; 330.975005
• DOI: 10.4284/0038-4038-2012.213
• Languages: English
• ISSNs: 0038-4038

Abstract

<abstract abstract-type="main"> <title> <x xml:space="preserve">Abstract</x> </title> <p>Interest groups are known to exert a sclerotic impact on mean growth, à la <xref ref-type="link" rid="soej2014812435-bib-0044">1982</xref>. It is unknown, however, what impact (if any) groups exert on the volatility of growth—an important hindrance to development. In this article, 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 generalized method of moments. 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.</p> </abstract>