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Judicial Lobbying: The Politics of Labor Law, Constitutional Interpretation. Argentina 1935-1998

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Author Info

  • Mariano Tommasi

    ()
    (Department of Economics, Universidad de San Andres & Center of Studies for Institutional Development)

  • Matias Iaryczower

    (University of California at Los Angeles)

  • Pablo T. Spiller

    (Haas School of Business, UC-Berkeley)

Abstract

This paper links the theory of interest groups influence over the legislature with that of congressional control over the judiciary. We develop a model in which (i) Court’s rulings can be reversed by Congress, and (ii) an Interest Group is privately informed about the realization of a variable affecting legislators’ preferences. Lobbying by the Interest Group can be informative to legislators provided equilibrium policy is responsive to the information disclosed. Since the rulings of an unconstrained court are unaffected by the state of nature, this can only happen if the Court is constrained by Congress. As a result, while the pro-interest group tendency of judicial decisions increases with the level of lobbying, lobbying falls the more divided Congress is on the relevant issues. We apply this framework to Supreme Court labor decisions in Argentina, and find results consistent with the predictions of the theory.

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File URL: ftp://webacademicos.udesa.edu.ar/pub/econ/doc73.pdf
File Function: First version, 2004
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Bibliographic Info

Paper provided by Universidad de San Andres, Departamento de Economia in its series Working Papers with number 73.

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Length: 44 pages
Date of creation: Jun 2004
Date of revision: Jun 2004
Handle: RePEc:sad:wpaper:73

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Keywords: judicial; lobby; labor law; constitutions; Argentina;

References

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  1. Thomas Stratmann, 1994. "How Reelection Constituencies Matter," University of Chicago - George G. Stigler Center for Study of Economy and State 97, Chicago - Center for Study of Economy and State.
  2. Snyder, James M, Jr, 1990. "Campaign Contributions as Investments: The U.S. House of Representatives, 1980-1986," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1195-1227, December.
  3. Stephen Ansolabehere & John M. de Figueiredo & James M. Snyder, 2003. "Why Is There So Little Money in Politics?," NBER Working Papers 9409, National Bureau of Economic Research, Inc.
  4. Banks, Jeffrey S. & Duggan, John, 2003. "A bargaining model of legislative policy-making," Working Papers 1162, California Institute of Technology, Division of the Humanities and Social Sciences.
  5. James Kau & Paul Rubin, 1979. "Public interest lobbies: membership and influence," Public Choice, Springer, vol. 34(1), pages 45-54, March.
  6. Banks, Jeffrey S & Sobel, Joel, 1987. "Equilibrium Selection in Signaling Games," Econometrica, Econometric Society, vol. 55(3), pages 647-61, May.
  7. Stratmann, Thomas, 1992. "Are Contributions Rational? Untangling Strategies of Political Action Committees," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 647-64, June.
  8. Stratmann, Thomas, 1995. "Campaign Contributions and Congressional Voting: Does the Timing of Contributions Matter?," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 127-36, February.
  9. Bernheim, B Douglas, 1994. "A Theory of Conformity," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 841-77, October.
  10. Stephen Ansolabehere & John M. de Figueiredo & James M. Snyder Jr, 2003. "Why is There so Little Money in U.S. Politics?," Journal of Economic Perspectives, American Economic Association, vol. 17(1), pages 105-130, Winter.
  11. Cho, In-Koo & Kreps, David M, 1987. "Signaling Games and Stable Equilibria," The Quarterly Journal of Economics, MIT Press, vol. 102(2), pages 179-221, May.
  12. De Figueiredo, John M. & De Figueiredo, Rui J. P. Jr., 2002. "The Allocation of Resources by Interest Groups: Lobbying, Litigation and Administrative Regulation," Working papers 4247-02, Massachusetts Institute of Technology (MIT), Sloan School of Management.
  13. Figueiredo John M. de & J. P. de Figueiredo Jr Rui, 2002. "The Allocation of Resources by Interest Groups: Lobbying, Litigation and Administrative Regulation," Business and Politics, De Gruyter, vol. 4(2), pages 1-22, August.
  14. John M. de Figueiredo & Rui J.P. de Figueiredo, 2002. "The Allocation of Resources by Interest Groups: Lobbying, Litigation and Administrative Regulation," NBER Working Papers 8981, National Bureau of Economic Research, Inc.
  15. Toma, Eugenia Froedge, 1991. "Congressional Influence and the Supreme Court: The Budget as a Signaling Device," The Journal of Legal Studies, University of Chicago Press, vol. 20(1), pages 131-46, January.
  16. Gely, Rafael & Spiller, Pablo T, 1990. "A Rational Choice Theory of Supreme Court Statutory Decisions with Applications to the State Farm and Grove City Cases," Journal of Law, Economics and Organization, Oxford University Press, vol. 6(2), pages 263-300, Fall.
  17. Peltzman, Sam, 1984. "Constituent Interest and Congressional Voting," Journal of Law and Economics, University of Chicago Press, vol. 27(1), pages 181-210, April.
  18. Lohmann, Susanne, 1994. "Information Aggregation through Costly Political Action," American Economic Review, American Economic Association, vol. 84(3), pages 518-30, June.
  19. Kalt, Joseph P & Zupan, Mark A, 1984. "Capture and Ideology in the Economic Theory of Politics," American Economic Review, American Economic Association, vol. 74(3), pages 279-300, June.
  20. Mario Bergara & Barak Richman & Pablo T. Spiller, 2002. "Modeling Supreme Court Strategic Decision Making: Congressional Constraint," Documentos de Trabajo (working papers) 1402, Department of Economics - dECON.
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