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Collective Lobbying in Politics: Theory and Empirical Evidence from Sweden

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  • Liang, Che-Yuan

    ()
    (Department of Economics)

Abstract

This paper first formulates a model of how the politicians in a local government collectively lobby to raise intergovernmental grants to their local government. The model identifies a relationship between council size and grants received. I then study this relationship empirically using the distribution of intergovernmental grants to the Swedish local governments. I use a fuzzy regression-discontinuity design that exploits a council size law to isolate exogenous variation in council size and find a large negative council size effect. This pattern provides indirect evidence for the occurrence of lobbying. The direction of the effect could be explained by free-riding incentives in individual lobbying effort contribution caused by a collective action problem in grant-raising among local government politicians.

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Bibliographic Info

Paper provided by Uppsala University, Department of Economics in its series Working Paper Series with number 2008:2.

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Length: 37 pages
Date of creation: 07 Feb 2008
Date of revision:
Handle: RePEc:hhs:uunewp:2008_002

Contact details of provider:
Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
Email:
Web page: http://www.nek.uu.se/
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Related research

Keywords: lobbying; rent-seeking; collective action problem; group size paradox; local governments; intergovernmental grants; regression-discontinuity;

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References

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