Black Hole Tariffs Endogenous Policy Theory Political Economy G… 9780521362474 G

Black Hole Tariffs and Endogenous Policy TheoryPolitical Economy in General Equilibrium\nAuthor(s): Stephen P. Magee, William A. Brock, Leslie Young\nFormat: Hardback\nPublisher: Cambridge University Press, United Kingdom\nImprint: Cambridge University Press\nISBN-13: 9780521362474, 978-0521362474\nSynopsis\nThis book provides a special interest theory of protection, developing a full general equilibrium theory that explains the distribution of income with goods markets, factor markets, lobbies, political parties, and voters all pursuing their self interest. This probabilistic voting model shows how well-organized groups can use seemingly irrational government policies to exploit poorly organized groups. Given rational predatory behaviour between these groups, protection or any other redistributive policy that improves the chances of election of a party increases political efficiency. This can create an economic black hole, conditions under which an entire economy can disappear into .