Economists calculate true value of ‘who’ you know, rather than ‘what’ in US politics

Economists at the University of Warwick have calculated the true value of US political lobbyists, proving the old adage ‘it is not what you know, but who you know’.

In a paper published this month in the American Economic Review Mirko Draca, from the University of Warwick’s Department of Economics, looked at the role of lobbyists in the US. He found their revenue falls by 24% when their former employer leaves government office.

The study examined the so-called ‘revolving door’ of politics, which refers to the movement of people from government service into lobbying positions.