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Incumbency advantage and political campaign spending limits

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  • Pastine, Ivan
  • Pastine, Tuvana

Abstract

This paper presents a model which captures the three main arguments for and against campaign spending limits. Campaign spending limits are purported to restrict the incumbent's ability to exploit his fundraising advantage. In contrast to conventional wisdom, a ceiling increases the incumbent's probability of victory regardless of the candidates' relative fundraising abilities as long as the challenger is not more effective in campaign spending. If the challenger is more effective in campaign spending, ceilings have a non-monotonic effect when the incumbent enjoys a mild initial voter disposition advantage; A moderate ceiling decreases the incumbent's probability of victory but further restricting the limit favors the incumbent. Irrespective of incumbency status, the marginal benefit to quality decreases with a more restrictive cap. In an open-seat contest, a more restrictive limit improves the electoral prospects of the superior quality candidate. Stricter ceilings may lead to the unintended consequence of increased expected spending.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Public Economics.

Volume (Year): 96 (2012)
Issue (Month): 1 ()
Pages: 20-32

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Handle: RePEc:eee:pubeco:v:96:y:2012:i:1:p:20-32

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Web page: http://www.elsevier.com/locate/inca/505578

Related research

Keywords: Campaign finance legislation; Spending cap; Expenditure limit; Preferential treatment all-pay auction; Contest; Head-start advantage;

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References

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Cited by:
  1. Matthew T. Cole & Ivan Pastine & Tuvana Pastine, 2013. "Incumbency Advantage in an Electoral Contest," Working Papers 1304, Florida International University, Department of Economics.
  2. Jan K. Brueckner & Kangoh Lee, 2013. "Negative Campaigning in a Probabilistic Voting Model," CESifo Working Paper Series 4233, CESifo Group Munich.
  3. HHironori Otsubo, 2012. "Contests with Incumbency Advantages: An Experiment Investigation of the Effect of Limits on Spending Behavior and Outcome," Jena Economic Research Papers 2012-020, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.

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