Estimating the Value of Proposal Power.

The article investigates the role of proposal power in the allocation of congressionally earmarked transportation projects across congressional districts in the U.S. in 1991 and 1998. Congressional negotiations over the allocation of transportation funds are well-suited to an empirical test of predictions from noncooperative bargaining models. The U.S. House of Representatives authorized $5 billion for earmarked transportation projects in 1991 and $8 billion in 1998. In order to maximize their own payoffs, the proposal committee has an incentive to use the entire budget, restrict the coalition size to that required for passage, make the proposal support condition for noncommittee members binding and offer an allocation that will be approved.