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How Do Campaign Contributions from Pharmaceutical Manufacturers Influence Senators’ Policy Decisions?

by Ashlyn Hankey

Abstract

This paper examines the influence of the main interest groups in the debate over amending Section 936 of bill HR 4210, a bill that grants tax credits to American manufacturers with sites in Puerto Rico. The amendment proposed to place stipulations on the pharmaceutical manufacturers’ eligibility for the credit to lower the cost of prescription drugs. Using the Logit model, the effects of each of these groups is seen on the voting behavior of the senators of the 101st Congress on this bill. The study concluded that the main factor affecting voting outcomes for senators on Section 936 was party affiliation.

Professor Edward Tower, Faculty Advisor

JEL Codes: D72,

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