Series: IMF Working Papers
Author(s): Claudio Paiva , and Rodrigo Moita
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 November 2006
Keywords: Political cycle, regulated prices, election, voters, elections, oil prices, Regulation and Business Law: General, Economics of Regulation,
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 welfa...