New Empirical Evidence of the Role of Interest Groups in Influencing the Growth of Government

Abstract

We provide new evidence regarding the role of interest groups in influencing the size and growth of government spending. Using data on the change in individual legislators’ total voted and sponsored spending from the status quo, we explore this relationship in a manner closer to the public choice tradition. Examining the impact diat interest groups have on individual legislators’ preferences for new spending, we find that interest groups within a legislator’s district exhibit more influence on the short-run growth of the budget than do Political Action Committees.