Download This PaperThe Dynamics of Firm Lobbying
48 Pages Posted: 3 Jan 2012 Last revised: 13 Aug 2013
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The Dynamics of Firm Lobbying
The Dynamics of Firm Lobbying
The Dynamics of Firm Lobbying
Date Written: August 12, 2013
Abstract
How is economic policy made? In this paper we study a key determinant of the answer to the question: lobbying by firms. Estimating a binary choice model of firm behavior, we find significant evidence for the idea that barriers to entry induce persistence in lobbying. The existence of these costs is further confirmed in studying how firms responded to a particular policy change: the expiration of legislation relating to the H-1B visa. Due to its influence on firm behavior, we argue that this persistence fundamentally changes the environment in which legislation is made.
Keywords: lobbying, political economy, immigration, H-1B
JEL Classification: D72, D73, D78, F22, F23, J61, O31, O38
Suggested Citation: Suggested Citation
William Fabius Lincoln
Claremont McKenna College - Robert Day School of Economics and Finance ( email )
500 E. Ninth St.
Claremont, CA 91711-6420
United States
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