1. This approach is able to capture possible differences between countries in what constitutes lobbying, or what a business association or chamber of commerce is. If there are certain things that fall under the definition of lobbying in country X but not in country Y, this will be reflected by a lower propensity to answer “yes” to the lobbying question in country Y. The multilevel models estimate a different intercept for each country, either through random or through fixed effects. This means that differences between countries in the propensity to answer “yes” due to differences in what constitutes lobbying or a business association will be reflected in the model through different intercepts.
2. Coen, Grant, and Wilson (2010);
3. Hojnacki et al. (2012).
4. Basinger and Hallerberg (2004);
5. Acemoglu and Robinson (2006).