Party Competition under Private and Public Financing: A Comparison of Institutions
Abstract
We propose a theory of party competition (two parties, single-issue) where citizens acquire party membership by contributing money to a party, and where a member’s influence on the policy taken by her party is proportional to her campaign contribution. The polity consists of informed and uninformed voters: only informed voters join parties, and the party campaign chest, the sum of its received contributions, is used to reach uninformed voters through advertising. A party is a cooperative organization of its members. Parties compete with each other strategically with respect to policy choice and advertising. We propose a definition of political equilibrium, in which party membership, citizen contributions, and parties’ policies are simultaneously determined, for each of four financing institutions, running the gamut between a purely private, unconstrained system, to a public system in which all citizens have equal financial input. Equilibria under these institutions are computed by simulation for an example. The representation and welfare properties of these four institutions are compared from these simulations.Download Info
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Bibliographic Info
Article provided by De Gruyter in its journal The B.E. Journal of Theoretical Economics.
Volume (Year): advances.6 (2006)
Issue (Month): 1 ()
Pages: 2
Contact details of provider:
Web page: http://www.degruyter.com
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Web: http://www.degruyter.com/view/j/bejte
Related research
Keywords: party competition; political equilibrium; representation; campaign finance;Find related papers by JEL classification:
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Campante, Filipe R., 2011.
"Redistribution in a model of voting and campaign contributions,"
Journal of Public Economics,
Elsevier, vol. 95(7), pages 646-656.
- Campante, Filipe R., 2011. "Redistribution in a model of voting and campaign contributions," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 646-656, August.
- Campante, Filipe, 2007. "Redistribution in a Model of Voting and Campaign Contributions," Working Paper Series rwp07-045, Harvard University, John F. Kennedy School of Government.
- Bugarin, Maurício & Portugal, Adriana & Sakurai, Sérgio, 2008. "Inequality and Cost of Electoral Campaigns in Latin America," Ibmec Working Papers wpe_152, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
- Jenny De Freitas, 2009. "Political support for the private system to finance political parties," DEA Working Papers 35, Universitat de les Illes Balears, Departament d'Economía Aplicada.
- Maurício Bugarin & Adriana Portugal & Sérgio Sakurai, 2008. "Inequality and Cost of Electoral Campaigns in Latin America," Working Papers 08_14, Universidade de São Paulo, Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto.
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