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this event, firms with little or no prior exposure to the federal accounts that experienced cuts reduced their lobbying … spending. In contrast, firms with a high degree of exposure to the cuts maintained and even increased their lobbying spending … likely intensified their lobbying efforts to distinguish themselves from the others and improve their chances of procuring a …
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In this paper we examine the empirical relevance of three prominent endogenous protection models. Is protection for sale, or do altruistic policy makers worry about political support? We find strong evidence that protection is indeed for sale. The important new result is, however, that not only...
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