Kerr, William R.; Lincoln, William F.; Mishra, Prachi - In: American Economic Journal: Economic Policy 6 (2014) 4, pp. 343-79
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...