48 Pages Posted: 3 Jan 2012 Last revised: 13 Aug 2013
Date Written: August 12, 2013
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
Kerr, William R. and Lincoln, William Fabius and Mishra, Prachi, The Dynamics of Firm Lobbying (August 12, 2013). Harvard Business School Entrepreneurial Management Working Paper No. 12-034. Available at SSRN: https://ssrn.com/abstract=1978910 or http://dx.doi.org/10.2139/ssrn.1978910