The Reputational Dividends of Collaborating with a Highly Reputable Agency: The Case of the FDA and Its Domestic Partner Agencies

Abstract

AbstractWhat, if any, dividends do agencies reap from collaboration with a highly reputable agency, such as the FDA? Utilizing a dataset covering 30 U.S. federal agencies over a period of 34 years (1980–2013), we estimate the short and long-term reputational effects of interagency collaboration. Collaboration is measured by the number of memorandums of understanding (MOUs) in effect between each agency and the FDA, while agency reputation is assessed using an automated measure of media-coverage valence (positive/negative tone) for each agency-year. To account for potential reverse and reciprocal causality, we utilize cross-lagged fixed-effects models. We find evidence of moderate rises in reputation due to increased collaboration with the FDA. These effects persist significantly for two years, before decaying to null after four years. Employing similar analyses, we furthermore estimate reversed causality – of reputation on the level of consequent collaboration – finding no evidence of such effects.Research SupportMoshe Maor and Raanan Sulitzeanu-Kenan gratefully acknowledge financial support from the Israel Science Foundation under grant 1002/11.