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Campaign Advertising and Election Outcomes: Quasi-natural Experiment Evidence from Gubernatorial Elections in Brazil

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  • Bernardo S. Da Silveira
  • Jo�o M. P. De Mello

Abstract

Whether campaign advertising influences election outcomes is an open question; a paradox given the amount spent on campaigning in general and TV advertising in particular. We argue that such "absence of documentation" is due to the focus of the empirical literature on the U.S., where the allocation of campaign spending and advertising is decentralized. We explore a quasi-natural experiment that enables us to mitigate the omitted variables and reverse causality problems caused by decentralized allocation. In Brazil, gubernatorial elections work in a two-round system. In the first round, candidates' TV time shares are determined by their coalitions' share of seats in the National Parliament. In the second round, TV time is split equally between the first-round winner and runner-up. Using differences between rounds as a source of variation, we find a large causal effect of TV advertising on election outcomes. Copyright 2011, Oxford University Press.

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Bibliographic Info

Article provided by Oxford University Press in its journal The Review of Economic Studies.

Volume (Year): 78 (2011)
Issue (Month): 2 ()
Pages: 590-612

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Handle: RePEc:oup:restud:v:78:y:2011:i:2:p:590-612

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  1. Marie Rekkas, 2007. "The Impact of Campaign Spending on Votes in Multiparty Elections," The Review of Economics and Statistics, MIT Press, MIT Press, vol. 89(3), pages 573-585, August.
  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. Angus S. Deaton, 2009. "Instruments of development: Randomization in the tropics, and the search for the elusive keys to economic development," NBER Working Papers 14690, National Bureau of Economic Research, Inc.
  4. Snyder, James M, 1989. "Election Goals and the Allocation of Campaign Resources," Econometrica, Econometric Society, Econometric Society, vol. 57(3), pages 637-60, May.
  5. Prat, A., 1998. "Campaign Spending with Office-Seeking Politicians, Rational Voters and Multiple Lobbies," Discussion Paper, Tilburg University, Center for Economic Research 1998-123, Tilburg University, Center for Economic Research.
  6. W. Welch, 1981. "Money and votes: A simultaneous equation model," Public Choice, Springer, Springer, vol. 36(2), pages 209-234, January.
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Cited by:
  1. Bianchini Laura & Revelli Federico, 2011. "Green Polities: Urban Environmental Performance and Government Popularity," Department of Economics and Statistics Cognetti de Martiis. Working Papers, University of Turin 201104, University of Turin.

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