Political Price Cycles in Regulated Industries : Theory and Evidence /

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...

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Bibliographic Details
Main Author: Paiva, Claudio
Other Authors: Moita, Rodrigo
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2006.
Series:IMF Working Papers; Working Paper ; No. 2006/260
Online Access:Full text available on IMF