Doing More for Less? : New Evidence on Lobbying and Government Contracts /

Why do firms lobby? This paper exploits the unanticipated sequestration of federal budget accounts in March 2013 that reduced the availability of government funds disbursed through procurement contracts to shed light on this question. Following this event, firms with little or no prior exposure to t...

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Bibliografski detalji
Glavni autor: Agca, Senay
Daljnji autori: Igan, Deniz, Li, Fuhong, Mishra, Prachi
Format: Žurnal
Jezik:English
Izdano: Washington, D.C. : International Monetary Fund, 2019.
Serija:IMF Working Papers; Working Paper ; No. 2019/172
Teme:
Online pristup:Full text available on IMF
Opis
Sažetak:Why do firms lobby? This paper exploits the unanticipated sequestration of federal budget accounts in March 2013 that reduced the availability of government funds disbursed through procurement contracts to shed light on this question. Following this event, firms with little or no prior exposure to the federal accounts that experienced cuts reduced their lobbying spending. In contrast, firms with a high degree of exposure to the cuts maintained and even increased their lobbying spending. This suggests that, when the same number of contractors competed for a piece of a reduced pie, the more affected firms likely intensified their lobbying efforts to distinguish themselves from the others and improve their chances of procuring a larger share of the smaller overall. These findings are stronger in government-dependent sectors and when there is intense competition. The evidence is more consistent with a rent-seeking explanation for lobbying.
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Opis:1 online resource (47 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Pristup:Electronic access restricted to authorized BRAC University faculty, staff and students