Abstract Political power in political economy lacks standardized metrics. This study introduces a measurement method combining individual legislators' power with firms' political contributions. This corporate political power measure explains federal contracting success. Results show local politicians representing firms' operational areas provide greater contracting benefits than powerful national politicians. Federal representatives support local firms to boost constituent employment and re‐election prospects. Additionally, firms strategically reallocate contributions toward more electable politicians when experiencing political power decline, demonstrating adaptive behavior in maintaining influence.
Houston et al. (Wed,) studied this question.