Interest Group Networks and Economic Shocks

• In Event: A Contract in our Mutual Interest: Interest Group Collaboration Networks

Abstract

The participation of interest groups in the policy-creation process requires the creation of networks, not only with politicians but among other interest groups. These connections will change, as interest groups create different networks that are more efficient at representing and delivering their interests. In our work, we focus on the effect economic shocks have on interest group networks and their presence in the legislature. Using the participation of interest groups in committee debates in the Congress of Ecuador between 1979 and 2018, we define a connection between two interest groups when they participate in the same committee debate. We estimate the changes in the structure of interest group networks following economic shocks. The evidence shows that economic shocks have a "modular" effect on these networks, creating stronger ties within groups but weaker ties between groups. The results suggest that, when lobbying for policy, interest groups are more likely to sort themselves into more tightly knit communities when there is a stronger competition for limited resources.

Authors

• Joan C. Timoneda, Duke University

• Sebastian Vallejo, University of Maryland, College Park