Munich Personal RePEc Archive MPs for Sale? Estimating Returns to Office in Post-War British Politics Eggers, Andy and Hainmueller, Jens Harvard University, Institute for Quantitative Social Science 22 March 2008 Online at https://mpra.ub.uni-muenchen.de/7892/ MPRA Paper No. 7892, posted 23 Mar 2008 04:22 UTC MPs For Sale? Estimating Returns to Office in Post-War British Politics Andy Eggers – Harvard University Jens Hainmueller – Harvard University March 22, 2008 While the role of money in policymaking is a central question in political econ- omy research, surprisingly little attention has been given to the rents politi- cians actually derive from politics. We use both matching and a regression discontinuity design to analyze an original dataset on the estates of recently de- ceased British politicians. We find that serving in Parliament roughly doubled the wealth at death of Conservative MPs but had no discernible effect on the wealth of Labour MPs. We argue that Conservative MPs profited from office in a lax regulatory environment by using their political positions to obtain out- side work as directors, consultants, and lobbyists, both while in office and after retirement. Our results are consistent with anecdotal evidence on MPs’ outside financial dealings but suggest that the magnitude of Conservatives’ financial gains from office was larger than has been appreciated. Andy Eggers, PhD Candidate, Department of Government, 1737 Cambridge Street, Cambridge, MA 02138. Email:
[email protected]. Jens Hainmueller, PhD Candidate, Department of Government, 1737 Cambridge Street, Cambridge, MA 02138. E-mail:
[email protected]. Authors are listed in alpha- betical order and contributed equally.