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Does Political Ambiguity Pay? Corporate Campaign Contributions and the Rewards to Legislator Reputation


Randall S. Kroszner


Booth School of Business, University of Chicago; National Bureau of Economic Research (NBER)

Thomas Stratmann


George Mason University - Buchanan Center Political Economy; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

January 2000

NBER Working Paper No. w7475

Abstract:     
Do politicians tend to follow a strategy of ambiguity in their policy positions or a strategy of reputational development to reduce uncertainty about where they stand? Ambiguity could allow a legislator to avoid alienating constituents and to play rival interests off against each other to maximize campaign contributions. Alternatively, reputational clarity could help to reduce uncertainty about a candidate and lead to high campaign contributions from favored interests. We outline a theory that considers conditions under which a politician would and would not prefer reputational development and policy-stance clarity in the context of repeat dealing with special interests. Our proxy for reputational development is the percent of repeat givers to a legislator. Using data on corporate political action committee contributions (PACs) to members of the U.S. House during the seven electoral cycles from 1983/84 to 1995/96, we find that legislators do not appear to follow a strategy of ambiguity and that high reputational development is rewarded with high PAC contributions.

Number of Pages in PDF File: 45

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Date posted: March 15, 2000  

Suggested Citation

Kroszner, Randall S. and Stratmann, Thomas, Does Political Ambiguity Pay? Corporate Campaign Contributions and the Rewards to Legislator Reputation (January 2000). NBER Working Paper No. w7475. Available at SSRN: http://ssrn.com/abstract=211909

Contact Information

Randall S. Kroszner (Contact Author)
Booth School of Business, University of Chicago ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
773-702-8779 (Phone)
773-702-0458 (Fax)
HOME PAGE: http://gsbwww.uchicago.edu/fac/randall.kroszner/re
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Thomas Stratmann
George Mason University - Buchanan Center Political Economy ( email )
4400 University Drive
Fairfax, VA 22030
United States
703-993-2330 (Phone)
CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
Poschinger Str. 5
Munich, DE-81679
Germany
Feedback to SSRN (Beta)


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