Effect of Campaign Contributions on Legislator Behavior: Intra Dairy Industry Interest Group Competition

In the 1996 farm bill, the House of Representatives passed a bill reducing government protections for farmers by 2000. Before its implementation in 1999, the chamber passed a bill reversing these changes. We test the hypothesis that the reversal occurred because of changes in the allocation of campaign contributions from farmers, competing processors, and grocers. To estimate causal effects, we employ a legislator fixed effect logit model. The findings support the hypothesis that the strategic allocation of funds by special interests caused the legislative body to reverse its 1996 vote.