This paper addresses the questions of whether lobbying individually or through a trade association affects policy outcomes and what factors affect the choice of the mode of lobbying. We compiled a novel data set of lobbying expenditures that allows us not only to disentangle the amount of money...

(they are crowded out). Thus the subsidy strongly acts on the composition of those in education. We find that subsidies made conditional on financial resources are generally preferable to those conditional on ability and large equilibrium effects can be induced by relatively small changes in...