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Explaining Compensation Failure: Trade, Partisan Collusion, and the Underprovision of Compensation
Fri, April 4, 1:30 to 3:00pm CDT (1:30 to 3:00pm CDT), Palmer House Hilton, Floor: 7th, LaSalle 5Brief Overview
I explain the puzzle of compensation failure by suggesting that political elites can tacitly collude to prevent an electoral backlash to a lack of compensation. I find evidence for my argument using panel data on 20 European countries from 1990-2019.