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Lobbying for government appropriations

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  • Christian Cox

Abstract

This article investigates the effect of lobbying on government contract allocation. I consider how lobbying affects both total contract spending and the distribution of contracts between firms. I solve a novel contest model which incorporates these two effects, and then I structurally estimate it using a panel of federal contractors. The results suggest that lobbying increases contract spending by $8.837 billion (3.22%) per year. However, its effects on the observed contract distribution and firm revenues are relatively small. Lastly, I find that increasing competition in procurement generally results in less lobbying.

Suggested Citation

  • Christian Cox, 2023. "Lobbying for government appropriations," RAND Journal of Economics, RAND Corporation, vol. 54(3), pages 443-483, September.
    • Handle: RePEc:bla:randje:v:54:y:2023:i:3:p:443-483
    DOI: 10.1111/1756-2171.12447
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    1. Nathan Canen & Kristopher Ramsay, 2024. "Quantifying theory in politics: Identification, interpretation, and the role of structural methods," Journal of Theoretical Politics, , vol. 36(4), pages 301-327, October.

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