Interest groups and investment : A further test of the Olson hypothesis

@inproceedings{Coates2003InterestGA,
  title={Interest groups and investment : A further test of the Olson hypothesis},
  author={Dennis Coates and Jac C. Heckelman},
  year={2003}
}
Mancur Olson’s institutional sclerosis hypothesis may be evident in the effects of interest groups on investment in physical capital. To test this proposition, we use cross sectional data on 42 countries for which information on the number of interest groups is available to estimate the effect of those groups on the share of GDP that goes into physical investment. The results indicate that interest groups have a different effect on physical investment in OECD and non-OECD countries. In the OECD… CONTINUE READING