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Interest Group Lobbying and the Delegation of Policy Authority

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  • Randolph Sloof

Abstract

In a signalling model of lobbying the politicians' decision whether to delegate policy authority and an interest group's choice between lobbying politicians or bureaucrats are investigated. Only bureaucrats are able to assess policy‐relevant information coming from the interest group, but their interests may differ from those of politicians. In equilibrium politicians weigh the benefits of an informed policy decision against bureaucratic drift. We obtain that delegation occurs only when the bureaucracy is not too much biased and when the stakes of the interest group are not too high. Still, politicians sometimes prefer a biased bureaucracy and the interest group to have a larger stake. The model also predicts that interest groups typically lobby politicians to further delegation.

Suggested Citation

  • Randolph Sloof, 2000. "Interest Group Lobbying and the Delegation of Policy Authority," Economics and Politics, Wiley Blackwell, vol. 12(3), pages 247-274, November.
    • Handle: RePEc:bla:ecopol:v:12:y:2000:i:3:p:247-274
    DOI: 10.1111/1468-0343.00077
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    Cited by:

    1. Brito Duarte & Pereira Pedro & Vareda João, 2013. "Investment, Dynamic Consistency and the Sectoral Regulator’s Objective," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 13(2), pages 563-594, August.
    2. 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.
    3. Michael E. Doron, 2023. "Could Accounting Have Saved Itself from the Antitrust Laws?Revisiting the Antitrust Investigations into the US Accounting Profession 1966–1990," Abacus, Accounting Foundation, University of Sydney, vol. 59(3), pages 847-871, September.
    4. Mazza, Isidoro & van Winden, Frans, 2008. "An endogenous policy model of hierarchical government," European Economic Review, Elsevier, vol. 52(1), pages 133-149, January.
    5. Norbert Walter & Steffen Kern, 2011. "Politikberatung im EU-Finanzbinnenmarkt: vom Lamfalussy-Prozess zur europäischen Aufsicht," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 80(1), pages 91-105.
    6. Marco Sorge, 2015. "Lobbying (strategically appointed) bureaucrats," Constitutional Political Economy, Springer, vol. 26(2), pages 171-189, June.
    7. Roland Königsgruber, 2013. "Expertise-based lobbying and accounting regulation," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(4), pages 1009-1025, November.
    8. Evans, Joanne & Levine, Paul & Trillas, Francesc, 2008. "Lobbies, delegation and the under-investment problem in regulation," International Journal of Industrial Organization, Elsevier, vol. 26(1), pages 17-40, January.
    9. Peter Grajzl, 2011. "A property rights approach to legislative delegation," Economics of Governance, Springer, vol. 12(2), pages 177-200, June.

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