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Collective Lobbying in Politics: Theory and Empirical Evidence from SwedenChe-Yuan LiangUppsala University - Department of Economics; Research Institute of Industrial Economics (IFN) January 21, 2009 Uppsala University Working Paper No. 2008:2 Abstract: This paper first presents a model of how local government politicians lobby to raise intergovernmental grants to their local governments. The model identifies an effect of council size on grants received. This relationship is then studied empirically. I find a large negative effect of council size on grants received producing a “group size paradox”. The effect could be explained by free-riding incentives in individual lobbying effort contribution among local government politicians which arise due to a collective action problem. This pattern provides indirect evidence for the occurrence of intergovernmental lobbying.
Number of Pages in PDF File: 37 Keywords: lobbying, rent-seeking, collective action problem, group size paradox, intergovernmental grants, local governments, regression discontinuity JEL Classification: D72, D73, D78, H71, H72, H73, H77 working papers seriesDate posted: February 26, 2008 ; Last revised: August 11, 2009Suggested CitationContact Information
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