IDEAS home Printed from https://ideas.repec.org/p/smu/ecowpa/1504.html
   My bibliography  Save this paper

Revisiting the link between PAC contributions and lobbying expenditures

Author

Listed:
  • James Lake

    (Southern Methodist University)

Abstract

Data on campaign contributions of PACs (political action committees) in the US does not contain the PACs' issues of concern. Additionally, while recent US lobbying data details the issues of concern for an interest group, it does not detail the Congressional representatives lobbied by the interest group. Expanding the time-frame of earlier work, I confirm that PACs engaging in lobbying and campaign contributions account for the majority of such political money despite representing a small minority of all PACs. I show how this allows construction of a novel dataset that decomposes representative-specific contributions across issues as well as issue-specific lobbying expenditures across representatives. This decomposition can qualitatively a¤ect results regarding the relationship between political money and Congressional voting behavior on trade policy.

Suggested Citation

  • James Lake, 2015. "Revisiting the link between PAC contributions and lobbying expenditures," Departmental Working Papers 1504, Southern Methodist University, Department of Economics.
  • Handle: RePEc:smu:ecowpa:1504
    as

    Download full text from publisher

    File URL: https://ftp1.economics.smu.edu/WorkingPapers/2015/LAKE/LAKE-2015-04.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Kishore Gawande & Usree Bandyopadhyay, 2000. "Is Protection for Sale? Evidence on the Grossman-Helpman Theory of Endogenous Protection," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 139-152, February.
    2. Ludema, Rodney D & Mayda, Anna Maria & Mishra, Prachi, 2010. "Protection for Free? The Political Economy of U.S. Tariff Suspensions," CEPR Discussion Papers 7926, C.E.P.R. Discussion Papers.
    3. Lake, James & Millimet, Daniel L., 2016. "An empirical analysis of trade-related redistribution and the political viability of free trade," Journal of International Economics, Elsevier, vol. 99(C), pages 156-178.
    4. Paola Conconi & Giovanni Facchini & Max F. Steinhardt & Maurizio Zanardi, 2020. "The political economy of trade and migration: Evidence from the U.S. Congress," Economics and Politics, Wiley Blackwell, vol. 32(2), pages 250-278, July.
    5. Conconi, Paola & Facchini, Giovanni & Zanardi, Maurizio, 2014. "Policymakers' horizon and trade reforms: The protectionist effect of elections," Journal of International Economics, Elsevier, vol. 94(1), pages 102-118.
    6. Baldwin, Robert E & Magee, Christopher S, 2000. "Is Trade Policy for Sale? Congressional Voting on Recent Trade Bills," Public Choice, Springer, vol. 105(1-2), pages 79-101, October.
    7. Paola Conconi & Giovanni Facchini & Maurizio Zanardi, 2012. "Fast-Track Authority and International Trade Negotiations," American Economic Journal: Economic Policy, American Economic Association, vol. 4(3), pages 146-189, August.
    8. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-850, September.
    9. Per G. Fredriksson & Xenia Matschke & Jenny Minier, 2011. "Trade policy in majoritarian systems: the case of the U.S," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 44(2), pages 607-626, May.
    10. Christopher Sean Patrick Magee, 2010. "Would NAFTA have been Approved by the House of Representatives under President Bush? Presidents, Parties, and Trade Policy," Review of International Economics, Wiley Blackwell, vol. 18(2), pages 382-395, May.
    11. 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.
    12. Shushanik Hakobyan & John McLaren, 2016. "Looking for Local Labor Market Effects of NAFTA," The Review of Economics and Statistics, MIT Press, vol. 98(4), pages 728-741, October.
    13. Karam Kang, 2016. "Policy Influence and Private Returns from Lobbying in the Energy Sector," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 83(1), pages 269-305.
    14. Newey, Whitney K., 1987. "Efficient estimation of limited dependent variable models with endogenous explanatory variables," Journal of Econometrics, Elsevier, vol. 36(3), pages 231-250, November.
    15. Bombardini, Matilde & Trebbi, Francesco, 2012. "Competition and political organization: Together or alone in lobbying for trade policy?," Journal of International Economics, Elsevier, vol. 87(1), pages 18-26.
    16. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    17. 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.
    18. Facchini, Giovanni & Mayda, Anna Maria & Mishra, Prachi, 2011. "Do interest groups affect US immigration policy?," Journal of International Economics, Elsevier, vol. 85(1), pages 114-128, September.
    19. Marianne Bertrand & Matilde Bombardini & Francesco Trebbi, 2014. "Is It Whom You Know or What You Know? An Empirical Assessment of the Lobbying Process," American Economic Review, American Economic Association, vol. 104(12), pages 3885-3920, December.
    20. Gawande, Kishore, 1997. "US non-tariff barriers as privately provided public goods," Journal of Public Economics, Elsevier, vol. 64(1), pages 61-81, April.
    21. Milyo Jeffrey, 2002. "Bribes and Fruit Baskets: What Does the Link Between PAC Contributions and Lobbying Mean?," Business and Politics, De Gruyter, vol. 4(2), pages 1-4, August.
    22. Tripathi Micky & Ansolabehere Stephen & Jr James M. Snyder, 2002. "Are PAC Contributions and Lobbying Linked? New Evidence from the 1995 Lobby Disclosure Act," Business and Politics, De Gruyter, vol. 4(2), pages 1-26, August.
    23. Giovanni Maggi & Pinelopi Koujianou Goldberg, 1999. "Protection for Sale: An Empirical Investigation," American Economic Review, American Economic Association, vol. 89(5), pages 1135-1155, December.
    24. Austen-Smith, David, 1995. "Campaign Contributions and Access," American Political Science Review, Cambridge University Press, vol. 89(3), pages 566-581, September.
    25. repec:smu:ecowpa:1405 is not listed on IDEAS
    26. Im Hyejoon & Sung Hankyoung, 2011. "Empirical Analyses of U.S. Congressional Voting on Recent FTA," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-37, December.
    27. James Proudman & Stephen Redding, 2000. "Evolving Patterns of International Trade," Review of International Economics, Wiley Blackwell, vol. 8(3), pages 373-396, August.
    28. Proudman, James & Redding, Stephen, 2000. "Evolving Patterns of International Trade," Review of International Economics, Wiley Blackwell, vol. 8(3), pages 373-396, August.
    29. Paola Conconi & Giovanni Facchini & Max F. Steinhardt & Maurizio Zanardi, 2012. "The Political Economy of Trade and Migration: Evidence from the US Congress: CEPR Discussion Paper 9270," Working Papers ECARES ECARES 2012-49, ULB -- Universite Libre de Bruxelles.
    30. Wright, John R., 1985. "PACs, Contributions, and Roll Calls: An Organizational Perspective," American Political Science Review, Cambridge University Press, vol. 79(2), pages 400-414, June.
    31. Tripathi, Micky & Ansolabehere, Stephen & Snyder, James M., 2002. "Are PAC Contributions and Lobbying Linked? New Evidence from the 1995 Lobby Disclosure Act," Business and Politics, Cambridge University Press, vol. 4(2), pages 131-155, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Adam Fremeth & Brian Kelleher Richter & Brandon Schaufele, 2018. "Spillovers from regulating corporate campaign contributions," Journal of Regulatory Economics, Springer, vol. 54(3), pages 244-265, December.
    2. Martin Gregor, 2016. "Tullock's Puzzle in Pay-and-Play Lobbying," Economics and Politics, Wiley Blackwell, vol. 28(3), pages 368-389, November.
    3. Lake, James & Nie, Jun, 2023. "The 2020 US Presidential election and Trump’s wars on trade and health insurance," European Journal of Political Economy, Elsevier, vol. 78(C).
    4. Bellani, Luna & Fabella, Vigile Marie & Scervini, Francesco, 2020. "Strategic Compromise, Policy Bundling and Interest Group Power," IZA Discussion Papers 13924, Institute of Labor Economics (IZA).
    5. Lake, James & Millimet, Daniel L., 2016. "An empirical analysis of trade-related redistribution and the political viability of free trade," Journal of International Economics, Elsevier, vol. 99(C), pages 156-178.
    6. Bellani, Luna & Fabella, Vigile Marie & Scervini, Francesco, 2023. "Strategic compromise, policy bundling and interest group power: Theory and evidence on education policy," European Journal of Political Economy, Elsevier, vol. 77(C).
    7. Romero, Jorge A., 2022. "Lobbying and political expenses: Complements or substitutes?," Journal of Business Research, Elsevier, vol. 149(C), pages 558-575.
    8. Saha, Amrita, 2019. "Trade policy & lobbying effectiveness: Theory and evidence for India," European Journal of Political Economy, Elsevier, vol. 56(C), pages 165-192.
    9. Albuquerque, Rui & Lei, Zicheng & Rocholl, Jörg & Zhang, Chendi, 2020. "Citizens United vs. FEC and corporate political activism," Journal of Corporate Finance, Elsevier, vol. 60(C).
    10. Le, Thanh & Yalcin, Erkan, 2018. "Lobbying, campaign contributions, and electoral competition," European Journal of Political Economy, Elsevier, vol. 55(C), pages 559-572.
    11. James Lake & Jun Nie, 2022. "The 2020 US Presidential Election and Trump's Trade War," CESifo Working Paper Series 9669, CESifo.
    12. Fabella, Vigile Marie, 2017. "Political-economic determinants of education reform: Evidence on interest groups and student outcomes," European Journal of Political Economy, Elsevier, vol. 48(C), pages 144-161.
    13. repec:smu:ecowpa:1405 is not listed on IDEAS
    14. Omer Gokcekus & Sertac Sonan, 2017. "Political contributions and corruption in the United States," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 20(4), pages 360-372, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lake, James & Millimet, Daniel L., 2016. "An empirical analysis of trade-related redistribution and the political viability of free trade," Journal of International Economics, Elsevier, vol. 99(C), pages 156-178.
    2. Bombardini, Matilde & Trebbi, Francesco, 2012. "Competition and political organization: Together or alone in lobbying for trade policy?," Journal of International Economics, Elsevier, vol. 87(1), pages 18-26.
    3. William R. Kerr & William F. Lincoln & Prachi Mishra, 2014. "The Dynamics of Firm Lobbying," American Economic Journal: Economic Policy, American Economic Association, vol. 6(4), pages 343-379, November.
    4. Olimpia Cutinelli Rendina, 2023. "Lobbying or Innovation: Who Does What Against Foreign Competition," Working Papers halshs-03970033, HAL.
    5. Olimpia Cutinelli Rendina, 2023. "Lobbying or Innovation: Who Does What Against Foreign Competition," PSE Working Papers halshs-03970033, HAL.
    6. repec:smu:ecowpa:1405 is not listed on IDEAS
    7. Michael Blanga-Gubbay & Paola Conconi & Mathieu Parenti, 2020. "Globalization for Sale," CESifo Working Paper Series 8239, CESifo.
    8. Matilde Bombardini & Francesco Trebbi, 2020. "Empirical Models of Lobbying," Annual Review of Economics, Annual Reviews, vol. 12(1), pages 391-413, August.
    9. Paola Conconi & Giovanni Facchini & Max F. Steinhardt & Maurizio Zanardi, 2020. "The political economy of trade and migration: Evidence from the U.S. Congress," Economics and Politics, Wiley Blackwell, vol. 32(2), pages 250-278, July.
    10. Richard Damania & Per G. Fredriksson & Thomas Osang, 2005. "Polluters and Collective Action: Theory and Evidence," Southern Economic Journal, John Wiley & Sons, vol. 72(1), pages 167-185, July.
    11. Giovanni Facchini & Tommaso Frattini & Cora Signorotto, 2013. "Mind What Your Voters Read: Media Exposure and International Economic Policy Making," Development Working Papers 358, Centro Studi Luca d'Agliano, University of Milano.
    12. John M. de Figueiredo & Brian Kelleher Richter, 2013. "Advancing the Empirical Research on Lobbying," NBER Working Papers 19698, National Bureau of Economic Research, Inc.
    13. Facchini, Giovanni & Mayda, Anna Maria & Mishra, Prachi, 2011. "Do interest groups affect US immigration policy?," Journal of International Economics, Elsevier, vol. 85(1), pages 114-128, September.
    14. Saha, Amrita, 2019. "Trade policy & lobbying effectiveness: Theory and evidence for India," European Journal of Political Economy, Elsevier, vol. 56(C), pages 165-192.
    15. Bombardini, Matilde & Trebbi, Francesco, 2011. "Votes or money? Theory and evidence from the US Congress," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 587-611, August.
    16. Lake, James & Nie, Jun, 2023. "The 2020 US Presidential election and Trump’s wars on trade and health insurance," European Journal of Political Economy, Elsevier, vol. 78(C).
    17. Tovar, Patricia, 2011. "Lobbying costs and trade policy," Journal of International Economics, Elsevier, vol. 83(2), pages 126-136, March.
    18. Ludema, Rodney D & Mayda, Anna Maria & Mishra, Prachi, 2010. "Protection for Free? The Political Economy of U.S. Tariff Suspensions," CEPR Discussion Papers 7926, C.E.P.R. Discussion Papers.
    19. Conconi, Paola & Blanga-Gubbay, Michael & Parenti, Mathieu, 2020. "Lobbying for Globalization," CEPR Discussion Papers 14597, C.E.P.R. Discussion Papers.
    20. James Lake & Jun Nie, 2022. "The 2020 US Presidential Election and Trump's Trade War," CESifo Working Paper Series 9669, CESifo.
    21. Aquilante, Tommaso, 2015. "Bureaucrats or Politicians? Political Parties and Antidumping in the US," MPRA Paper 70359, University Library of Munich, Germany.

    More about this item

    Keywords

    Interest groups; Campaign finance; Contributions; Lobbying; Access; Trade policy; Free Trade Agreements;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:smu:ecowpa:1504. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ömer Özak (email available below). General contact details of provider: http://www.smu.edu/economics .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.