The effectiveness of savings and loan political action committees

In recent years, political action committees (PACs) have played an increasingly important role, both in contributing to candidates and in influencing voting patterns. Savings and loan PACs are numerous throughout the country and consist of PACs affiliated with individual institutions and trade associations. The question which is addressed in this research paper is the effectiveness which savings and loan related PACs have had on influencing voting patterns. Because of savings and loan allegiance to the real estate industry, voting patterns on a selected set of nine cogressional bills pertaining to various facets of real estate are used to test PAC effectiveness. These bills were voted on by the House of Representatives during the 1978–80 congressional term. A twenty-one simultaneous equation model which employs probit transformations, maximum likelihood estimation procedures, and two stage least squares, is built to test relationships among the endogenous variables of congressional votes, electoral margin, PAC contributions, and constituent and congressional ideology. In addition to testing the effectiveness of savings and loan PAC contributions, the results of the study shed light on savings and loan PAC performance relative to that of real estate PACs, labor PACs, home builder PACs, business PACs, and other PAC groupings. The model is also used to identify some determinants of PAC contribution patterns. As a related issue, the role of ideology as a predictor of voting patterns is re-examined. Findings indicate that savings and loan PACs have only been marginally successful in influencing real estate voting patterns when compared to the other PAC groups. Results also indicate that few variables could be identified as determinants of savings and loan contributions, whereas other more established PACs had determinants which were consistently significant. Overall, findings imply that PAC contribution procedures of the savings and loan industry could benefit by imitating or purchasing the expertise of more experienced PAC groups.