Public Funding Of Political Parties
AbstractThis paper concerns public funding of parties. Parties receive public funds depending on their vote share. Funds finance electoral campaigns. Two cases are investigated. In the first some voters are policy motivated and some are "impressionable" - their vote depends directly on campaign expenditures. In the second campaigning is informative and all voters are policy motivated. Public funds increase policy convergence in both cases. The effect is larger, the more funding depends on vote shares. When campaigns are informative, there may be multiple equilibria. Intuitively, a large party can stay large since it receives large funds.
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Bibliographic InfoPaper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2000-27.
Length: 42 pages
Date of creation: Nov 2000
Date of revision:
Publication status: Published by Ivie
Public Funding; Political Competition; Information.;
Other versions of this item:
- Ignacio Ortuno Ortin & Christian Schultz, 2000. "Public Funding of Political Parties," Econometric Society World Congress 2000 Contributed Papers 0735, Econometric Society.
- Christian Schultz & Ignacio Ortuno-OrtÍn, 2000. "Public Funding of Political Parties," CESifo Working Paper Series 368, CESifo Group Munich.
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