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The Effects of Election Advertising Spending and Incumbency on the General Election Results in Great Britain

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  • Sung-Kyu Lee

    ()
    (Department of International Trade, Andong National University, KOREA)

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    Abstract

    This paper attempts to estimate the effect of campaign advertising expenditures on vote outcomes in Great Britain?s general election over 1992-2001. It uses an empirical method to estimate the impact of electoral campaign expenditures on votes, but also attempts to develop a signaling model in the election by estimating the relationship between campaign spending and quality signaling through incumbency status. Specifically, this paper examines an empirical analysis of the impact of campaign expenditures on votes cast in the general elections in Great Britain. It extends Lee (2010) to incorporate the incumbency and interactive effect. First, it includes candidate and party incumbency status into the benchmark model so as to estimate incumbency effects. Second, it includes an interaction term between candidate incumbency and candidate spending to estimate interactive effects. The main features of the estimation model are to assess the impact of campaign expenditures on votes by estimating incumbency and interactive effects on votes.

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    File URL: http://www.bapress.ca/ref/v3-2/1923-7529-2013-02-97-22.pdf
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    Bibliographic Info

    Article provided by Better Advances Press, Canada in its journal Review of Economics & Finance.

    Volume (Year): 3 (2013)
    Issue (Month): (May)
    Pages: 97-118

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    Handle: RePEc:bap:journl:130208

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    Related research

    Keywords: Campaign advertising spending; Election; Incumbency effect; Interactive effect;

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    References

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    1. W. Welch, 1981. "Money and votes: A simultaneous equation model," Public Choice, Springer, Springer, vol. 36(2), pages 209-234, January.
    2. Levitt, Steven D, 1994. "Using Repeat Challengers to Estimate the Effect of Campaign Spending on Election Outcomes in the U.S. House," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 102(4), pages 777-98, August.
    3. Bernhardt, M. Daniel & Ingerman, Daniel E., 1985. "Candidate reputations and the `incumbency effect'," Journal of Public Economics, Elsevier, Elsevier, vol. 27(1), pages 47-67, June.
    4. Palda, Kristian S, 1975. "The Effect of Expenditure on Political Success: Reply," Journal of Law and Economics, University of Chicago Press, University of Chicago Press, vol. 18(3), pages 779-80, December.
    5. Cox, Gary W. & Katz, Jonathan N., 1995. "Why Did The Incumbency Advantage In U.S. House Elections Grow?," Working Papers, California Institute of Technology, Division of the Humanities and Social Sciences 939, California Institute of Technology, Division of the Humanities and Social Sciences.
    6. Palda, Kristian S, 1975. "The Effect of Expenditure on Political Success," Journal of Law and Economics, University of Chicago Press, University of Chicago Press, vol. 18(3), pages 745-71, December.
    7. Randall G. Chapman & Kristian S. Palda, 1984. "Assessing the Influence of Campaign Expenditures on Voting Behavior with a Comprehensive Electoral Market Model," Marketing Science, INFORMS, INFORMS, vol. 3(3), pages 207-226.
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