Caps on Political Lobbying
The cost of political campaigns in the U.S. has risen substantially in recent years. For example, real spending on congressional election campaigns doubled between 1976 and 1992 (Steven D. Levitt ). There are many reasons why increased campaign spending might be socially harmful. First, increased spending means increased fund-raising, which may keep politicians from their legislative duties.1 Second, a lobbyist who makes a large campaign contribution may have undue influence on electoral outcomes, on the shaping of legislation, or on the outcome of regulatory proceedings.2 That is, the socially preferred candidate or legislation may not prevail. Likewise, a lobbyist involved in a regulatory matter or a competition for a government contract may benefit unduly from a legislator's intervention.3 Third, a perception that campaign contributions purchase influence may lead to increased tolerance of corruption in the private sector. A desire to control campaign spending has spawned many initiatives to limit both campaign contributions and spending, beginning with the passage of the Federal Election Campaign Act (FECA). Political Action Committees (PACs) can contribute at most $5,000 per election to a candidate, while individuals can contribute at most $1,000. (Restrictions have also been put on in- kind contributions, making it more difficult to circumvent these limits.)4 While direct restrictions on campaign spending have proven difficult to implement, recent initiatives aim to impose voluntary spending limits and stricter limits on contributions.5 Despite the existing legislation and the proposals to limit contributions, little is known about the impact of contribution limits on aggregate expenditures. While it is intuitively appealing that aggregate expenditures would drop, we challenge that intuition here. We study a lobbying game and show that a cap on individual lobbyists' expenditures may have the perverse effect of increasing aggregate expenditures and loweri
(This abstract was borrowed from another version of this item.)
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 88 (1998)
Issue (Month): 3 (June)
|Contact details of provider:|| Web page: https://www.aeaweb.org/aer/|
More information through EDIRC
|Order Information:||Web: https://www.aeaweb.org/subscribe.html|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Baye, Michael R & Kovenock, Dan & de Vries, Casper G, 1993.
"Rigging the Lobbying Process: An Application of the All-Pay Auction,"
American Economic Review,
American Economic Association, vol. 83(1), pages 289-94, March.
- Baye, M.R. & Kovenock, D. & De Vries, C.G., 1991. "Rigging The Lobbying Process: An Application Of The All- Pay Auction," Purdue University Economics Working Papers 1002, Purdue University, Department of Economics.
- Baye, M.R. & Kovenock, D. & De Vries, C.G., 1992. "Rigging the Lobbying Process: An Application of the All- Pay Auction," Papers 9-92-2, Pennsylvania State - Department of Economics.
- Poole, Keith T & Romer, Thomas & Rosenthal, Howard, 1987. "The Revealed Preferences of Political Action Committees," American Economic Review, American Economic Association, vol. 77(2), pages 298-302, May.
- Dan Kovenock & Michael R. Baye & Casper G. de Vries, 1996.
"The all-pay auction with complete information (*),"
Springer;Society for the Advancement of Economic Theory (SAET), vol. 8(2), pages 291-305.
- Baye, M.R. & Kovenock, D. & De Vries, C.G., 1991. "The All-Pay Auction With Complete Information," Purdue University Economics Working Papers 1007, Purdue University, Department of Economics.
- Baye, M.R. & Kovenock, D. & De Vries, C., 1992. "The All-Pay Auction with Complete Information," Papers 8-92-1, Pennsylvania State - Department of Economics.
- Kovenock, D. & de Vries, C.G., 1995. "The All-Pay Auction with Complete Information," UFAE and IAE Working Papers 311.95, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Baye, M.R. & Kovenock, D. & De Varies, C.G., 1990. "The All-Pay Auction With Complete Information," Papers 9051, Tilburg - Center for Economic Research.
- Baye, M. & Kovenock, D. & de Vries, C., 1990. "The All-Pay Auction with Complete Information," Discussion Paper 1990-51, Tilburg University, Center for Economic Research.
- Arye L. Hillman & John G. Riley, 1989.
"Politically Contestable Rents And Transfers,"
Economics and Politics,
Wiley Blackwell, vol. 1(1), pages 17-39, 03.
- Helsley, Robert W. & O'Sullivan, Arthur, 1994. "Altruistic voting and campaign contributions," Journal of Public Economics, Elsevier, vol. 55(1), pages 107-119, September.
When requesting a correction, please mention this item's handle: RePEc:aea:aecrev:v:88:y:1998:i:3:p:643-51. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jane Voros)or (Michael P. Albert)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.