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Lobbying-consistent Delegation and Sequential Policy Making

Author

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  • Marco Maria Sorge

    (BGSE, University of Bonn)

Abstract

This paper studies the relationship between interest group political influence and allocation of decisionmaking power in a potentially divided government. We consider a simple endogenous policy model in which a legislator is in charge of setting the levels of two different policy instruments - a tax rate and a revenue redistribution scheme - and may decide to delegate policy authority over the allocation task to a bureaucracy within a hierarchy. An organized group is able to influence the political process at both tiers through the provision of policy-contingent contributions. We find conditions under which legislative delegation and sequential decisionmaking are consistent in equilibrium with the presence of two-tier lobbying, as the effects of the former on the allocation of lobbying activities exactly counterbalance the loss from bureaucracy's capture. As a consequence, we find that the possibility of multi-tier lobbying within a divided government need not be harmful to the higher level policy maker in the political equilibrium.

Suggested Citation

  • Marco Maria Sorge, 2010. "Lobbying-consistent Delegation and Sequential Policy Making," Economics Bulletin, AccessEcon, vol. 30(4), pages 3088-3102.
  • Handle: RePEc:ebl:ecbull:eb-10-00695
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    File URL: http://www.accessecon.com/Pubs/EB/2010/Volume30/EB-10-V30-I4-P285.pdf
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    Cited by:

    1. Nayara F. Macedo de Medeiros Albrecht, 2023. "Bureaucrats, interest groups and policymaking: a comprehensive overview from the turn of the century," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-10, December.

    More about this item

    Keywords

    Multi-tier lobbying; Multilevel governments; Delegation; Endogenous policy making;
    All these keywords.

    JEL classification:

    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations

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