Is It Whom You Know or What You Know? An Empirical Assessment of the Lobbying Process
What do lobbyists do? Some believe that lobbyists' main role is to provide issue-specific information and expertise to congressmen to help guide the law-making process. Others believe that lobbyists mainly provide the firms and other special interests they represent with access to politicians in their "circle of influence" and that this access is the be-all and end-all of how lobbyists affect the lawmaking process. This paper combines a descriptive analysis with more targeted testing to get inside the black box of the lobbying process and inform our understanding of the relative importance of these two views of lobbying. We exploit multiple sources of data covering the period 1999 to 2008, including: federal lobbying registration from the Senate Office of Public Records, Federal Election Commission reports, committee and subcommittee assignments for the 106th to 110th Congresses, and background information on individual lobbyists. A pure issue expertise view of lobbying does not fit the data well. Instead, maintaining connections to politicians appears central to what lobbyists do. In particular, we find that whom lobbyists are connected to (through political campaign donations) directly affects what they work on. More importantly, lobbyists appear to systematically switch issues as the politicians they were previously connected to switch committee assignments, hence following people they know rather than sticking to issues. We also find evidence that lobbyists that have issue expertise earn a premium, but we uncover that such a premium for lobbyists that have connections to many politicians and Members of Congress is considerably larger.
|Date of creation:||Feb 2011|
|Publication status:||published as “Is It Whom You Know Or What You Know? An Empirical Assessment of the Lobbying Process” (joint with Matilde Bombardini and Francesco Trebbi), forthcoming, American Economic Review.|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Timothy Besley & Ian Preston, 2007.
"Electoral Bias and Policy Choice: Theory and Evidence,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 122(4), pages 1473-1510.
- Tim Besley & Ian Preston, 2006. "Electoral bias and policy choice: theory and evidence," IFS Working Papers W06/03, Institute for Fiscal Studies.
- Tim Besley & Ian Preston, 2007. "Electoral bias and policy choice: theory and evidence," IFS Working Papers W07/06, Institute for Fiscal Studies.
- Timothy Besley & Ian Preston, 2006. "Electoral Bias and Policy Choice:Theory and Evidence," STICERD - Political Economy and Public Policy Paper Series 17, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- Jordi Blanes i Vidal & Mirko Draca & Christian Fons-Rosen, 2012. "Revolving Door Lobbyists," American Economic Review, American Economic Association, vol. 102(7), pages 3731-3748, December.
- Jordi Blanes i Vidal & Mirko Draca & Christian Fons-Rosen, 2010. "Revolving Door Lobbyists," CEP Discussion Papers dp0993, Centre for Economic Performance, LSE.
- Jordi Blanes i Vidal & Mirko Draca & Christian Fons-Rosen, 2010. "Revolving door lobbyists," LSE Research Online Documents on Economics 31546, London School of Economics and Political Science, LSE Library.
- Austen-Smith, David & Banks, Jeffrey S., 2002. "Costly signaling and cheap talk in models of political influence," European Journal of Political Economy, Elsevier, vol. 18(2), pages 263-280, June. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:16765. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.