Sadiraj, Vjollca Tuinstra, Jan van Winden, Frans A.A.M.
Year of Publication:
Tinbergen Institute Discussion Paper 00-022/1
We present a dynamic model of the interaction between interest groupsand policymakers, featuringendogenous interest group formation. We show that complicated dynamicpatterns in economicpolicies may arise once interest group formation is taken intoaccount.
Interest groups Aspiration level Endogenous fluctuations