New evidence on indirect lobbying
In new research (DellaVigna et al., 2014) we look at a different channel for the conflict of interest for politicians with business holdings. Specifically, we study whether third parties try to curry favour with conflicted politicians by shifting their business towards firms controlled by a politician. The politician benefits financially from the increased business, and the 3rd parties expect favourable regulation in exchange. We label this channel, involving lobbying through business proxies and which includes not received much attention in the literature, as ‘indirect lobbying’.