Public-Private Contracting and Political Reciprocity

Abstract

Prior research linking public-private contracts with political donations has not examined the dynamics of exchange. Evaluating data from Wisconsin, I test for a temporal association between the awarding of public-private construction contracts and political donations by construction firm owners and executives. My findings indicate that donation activity peaks near the months when contracts are approved; that contract-related donation premiums are comparable in magnitude to election cycle premiums; and that political giving varies across three separate procurement processes. I deduce that patterns of political giving reflect strategic expenditures during the negotiation phase of the public-private procurement process. These findings have implications for campaign finance reform and privatization policy.