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Contributions to Federal Election Campaigns by Government Contractors


  • Lichtenberg, Frank R


The author develops a theoretical model that determines whether or not a firm sponsors a political action committee and, if it does, the quantity of funds that the political action committee will disburse. The firm is assumed to face supply and demand schedules for political action committee receipts, whose positions depend on attributes of the firm, such as firm size, government-sales intensity, and market structure. Two related equations derived from the theoretical model--a probit equation for political action committee sponsorship and a disbursements equation--are estimated using pooled data on 226 government (primarily defense) contracting firms during the 1979-80 and 1981-82 election cycles. Copyright 1989 by Blackwell Publishing Ltd.

Suggested Citation

  • Lichtenberg, Frank R, 1989. "Contributions to Federal Election Campaigns by Government Contractors," Journal of Industrial Economics, Wiley Blackwell, vol. 38(1), pages 31-48, September.
  • Handle: RePEc:bla:jindec:v:38:y:1989:i:1:p:31-48

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    Cited by:

    1. Garcia-Alonso, Maria del Carmen, 2003. "National-security export-quality restrictions in segmented and non-segmented markets," European Journal of Political Economy, Elsevier, vol. 19(2), pages 377-390, June.
    2. Guido Schaefer, 2005. "Economics: Friend or Foe of Politics to Support Strategically Important Domestic Industries?," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 33(2), pages 193-200, June.

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