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Political support for the private system to finance political parties

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Author Info
Jenny De Freitas () (Universitat de les Illes Balears)

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Abstract

In a Downsian model of political competition we compare the equilibrium tax and redistribution level obtained from two systems to finance parties' political campaigns: the public and the private system. In the private system ideological voters make campaign contributions to increase the chances of winning of their preferred party. In the public system parties receive funds from the government. If voters are sufficiently ideological the private system induces high aggregate spending. Nevertheless, it may be supported by a majority of voters given the indirect effect contributions have on the equilibrium redistribution level and parties' probability of winning.

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Publisher Info
Paper provided by Universitat de les Illes Balears, Departament d'Economía Aplicada in its series DEA Working Papers with number 35.

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Date of creation: 2009
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Handle: RePEc:ubi:deawps:35

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Related research
Keywords: Political economy; redistribution; campaign finance.;

Find related papers by JEL classification:
D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior
P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism

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References listed on IDEAS
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  1. Grossman, Gene M & Helpman, Elhanan, 1996. "Electoral Competition and Special Interest Politics," Review of Economic Studies, Blackwell Publishing, vol. 63(2), pages 265-86, April. [Downloadable!] (restricted)
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  2. Aragones, Enriqueta & Palfrey, Thomas R., 2003. "Spatial Competition Between Two Candidates of Different Quality: The Effects of Candidate Ideology and Private Information," Working Papers 1169, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
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  3. Andreoni, James, 1988. "Privately provided public goods in a large economy: The limits of altruism," Journal of Public Economics, Elsevier, vol. 35(1), pages 57-73, February. [Downloadable!] (restricted)
  4. John E. Roemer, 2006. "Party Competition under Private and Public Financing: A Comparison of Institutions," The B.E. Journal of Theoretical Economics, Berkeley Electronic Press, vol. 0(1). [Downloadable!]
  5. Stephen Coate, 2004. "Pareto-Improving Campaign Finance Policy," American Economic Review, American Economic Association, vol. 94(3), pages 628-655, June. [Downloadable!]
  6. Christian Schultz, 2007. "Strategic Campaigns and Redistributive Politics," Economic Journal, Royal Economic Society, vol. 117(522), pages 936-963, 07. [Downloadable!] (restricted)
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  7. Nicolas Sahuguet & Nicola Persico, 2006. "Campaign spending regulation in a model of redistributive politics," Economic Theory, Springer, vol. 28(1), pages 95-124, 05. [Downloadable!] (restricted)
  8. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February. [Downloadable!] (restricted)
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  9. Amihai Glazer & Mark Gradstein, 2005. "Elections with contribution-maximizing candidates," Public Choice, Springer, vol. 122(3), pages 467-482, March. [Downloadable!] (restricted)
  10. Ignacio Ortuno-Ortin & Christian Schultz, 2005. "Public Funding of Political Parties," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 7(5), pages 781-791, December. [Downloadable!] (restricted)
    Other versions:
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