Do Powerful Politicians Really Cause Corporate Downsizing?

8 Pages Posted: 5 Sep 2014 Last revised: 21 Oct 2015

See all articles by Jason Snyder

Jason Snyder

University of California, Los Angeles (UCLA) - Anderson School of Management

Ivo Welch

University of California, Los Angeles (UCLA); National Bureau of Economic Research (NBER)

Date Written: October 20, 2015

Abstract

Cohen, Coval, and Malloy (2011) suggest that increased government spending crowded out private corporate investment by publicly-traded corporations, as identified by changes in Congressional chairmanships. Yet, the same inference would obtain in a placebo that begins years earlier, the capital-expenditure decline was primarily a 1987-92 Texas effect (following a 1980-86 oil price decline), and the standard errors were not clustered by state.

Keywords: Earmarks, Investment

JEL Classification: E13, E62, G31

Suggested Citation

Snyder, Jason and Welch, Ivo, Do Powerful Politicians Really Cause Corporate Downsizing? (October 20, 2015). Available at SSRN: https://ssrn.com/abstract=2491368 or http://dx.doi.org/10.2139/ssrn.2491368

Jason Snyder

University of California, Los Angeles (UCLA) - Anderson School of Management ( email )

110 Westwood Plaza
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Ivo Welch (Contact Author)

University of California, Los Angeles (UCLA) ( email )

110 Westwood Plaza
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Los Angeles, CA 90095-1481
United States
310-825-2508 (Phone)

HOME PAGE: http://www.ivo-welch.info

National Bureau of Economic Research (NBER)

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