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Electoral and Financial Effects of Changes in Committee Power: The Gramm-Rudman-Hollings Budget Reform, the Tax Reform Act of 1986, and the Money Committees in the House

Jeffrey Milyo

Journal of Law and Economics, 1997, vol. 40, issue 1, 93-111

Abstract: Most rational choice theories of legislatures locate the source of committee power in the restrictive procedural rules that enforce committee jurisdictions. However there is no empirical support for this claim; further, there is little evidence for the natural implication that membership on more powerful committees confers electoral benefits. I address these puzzles by exploiting the occurrence of major budget and tax reforms in the mid-eighties; these reforms provide a natural experiment for measuring the electoral and financial consequences of changes in committee power. The author shows that the procedural rule changes, instituted by the Gramnm-Rudman-Hollings budget reform, caused an increase in campaign contributions to members of the Budget Committee and led to a reduction in the vote share of members of the Appropriations Committee. This heretofore unrecognized effect, of the Gramm-Rudman-Hollings budget reform on the welfare of members of the House, rivals that of a more widely recognized "policy shock," the Tax Reform Act of 1986. Copyright 1997 by the University of Chicago.

Date: 1997
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