All in a day's work: The financial rewards of legislative effectiveness

The investment theory of campaign finance posits that political action committees invest campaign funds in members who provide services at a low cost. We build on and directly test this theory, hypothesizing that PACs give to members who are effective legislators. Using data collected from the 103d and 104th Congresses and a direct measure of effectiveness, we find that contributions flow to members who are successful in getting a large percentage of their sponsored bills enacted into law. Being an effective legislator is one way a member can purchase time for his or her Washington work.