Measuring the Effects of Post-Government Employment Restrictions

Abstract:     
The "revolving door" problem linking private interests and government decision-makers has become an important mechanism in the implementation of influence peddling. The revolving door problem is premised on the assumption that there is a market for the services of ex-government employees. However, no attempt has been made to provide a measure of the value of these services, nor to evaluate the effect of regulations intended to curb this practice. This paper attempts to fill this gap by utilizing an event-study methodology to measure the effect of gaining "access" to government under alternative regulations.

Accepted Paper Series