Politico‐Economic Complementarities
Politico‐Economic Complementarities
This chapter discusses politico‐economic complementarities, i.e. the fact that a given institution, when in place, may create political support for another one. If complementarities prevail, reform packages are more politically viable than isolated reforms. Complementarities are strong between institutions that create rents, such as wage rigidity, and institutions that protect rents, such as employment protection. On the other hand, if exposure effects dominate, there is no politico‐economic complementarity between rent‐creating, or rent‐protecting institutions and unemployment benefits. Finally, complementarities arise if competing groups set their own level of rigidity.
Keywords: competing groups, epidemics of rigidity, politico‐economic complementarities
Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.
Please, subscribe or login to access full text content.
If you think you should have access to this title, please contact your librarian.
To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .
