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The Determinants of Campaign Spending: The Role of the Government Jackpot

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  • Palda, Filip

Abstract

To raise money for their campaigns, political candidates auction a part of government wealth (the jackpot) to contributors. The larger the jackpot, the more candidates spend. Data on the gubernatorial races of 1978 and 1986 indicate that (1) for every dollar increase in the per capita jackpot, campaign spending rises by 0.0004 cents per voter; (2) balanced budget laws hinder the candidate's ability to raise money; and (3) in states that give the governor more power over the budget (measured by a "Schlesinger" index), candidates raise more. The paper emphasizes that candidates willingly limit their spending to avoid indebtedness to contributors. Copyright 1992 by Oxford University Press.

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Bibliographic Info

Article provided by Western Economic Association International in its journal Economic Inquiry.

Volume (Year): 30 (1992)
Issue (Month): 4 (October)
Pages: 627-38

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Handle: RePEc:oup:ecinqu:v:30:y:1992:i:4:p:627-38

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Cited by:
  1. Gregory Randolph, 2011. "The voter initiative and the power of the governor: evidence from campaign expenditures," Constitutional Political Economy, Springer, vol. 22(3), pages 265-286, September.
  2. Ivan Pastine & Tuvana Pastine, 2010. "Political Campaign Spending Limits," Working Papers 201034, School Of Economics, University College Dublin.
  3. Pastine, Ivan & Pastine, Tuvana, 2012. "Incumbency advantage and political campaign spending limits," Journal of Public Economics, Elsevier, vol. 96(1), pages 20-32.
  4. Filip Palda, 2001. "Election Finance Regulation in Emerging Democracies: Lessons from Canada and the U.S," Public Economics 0111010, EconWPA.
  5. David R. Stockman, 2001. "Balanced-Budget Rules: Welfare Loss and Optimal Policies," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 4(2), pages 438-459, July.
  6. Potters, J.J.M. & Sloof, R., 1996. "Interest groups: A survey of empirical models that try to assess their influence," Open Access publications from Tilburg University urn:nbn:nl:ui:12-73373, Tilburg University.
  7. Filip Palda, 2002. "Campaign Finance: An Introduction to the Field," Public Economics 0209005, EconWPA.
  8. Joaquín Artés & Enrique Viñuela, 2007. "Campaign spending and office-seeking motivations: an empirical analysis," Public Choice, Springer, vol. 133(1), pages 41-55, October.

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