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Campaign finance regulations and policy convergence: The role of interest groups and valence

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  • Köppl-Turyna, Monika

Abstract

Regulation of campaign finance of political parties and candidates is intended to decrease the political influence of special interest groups and enhance the public interest in electoral outcomes. I investigate empirically the consequences of campaign financing regulations and find that public funding leads parties' platforms to diverge whereas ceilings on individual contributions lead to platform convergence to the median voter outcome. I relate these consequences to differences in valence or intrinsic popularity of parties. I also show that platform divergence is associated with a ban on corporate donations and with requirements of public disclosure of parties' income statements.

Suggested Citation

  • Köppl-Turyna, Monika, 2014. "Campaign finance regulations and policy convergence: The role of interest groups and valence," European Journal of Political Economy, Elsevier, vol. 33(C), pages 1-19.
    • Handle: RePEc:eee:poleco:v:33:y:2014:i:c:p:1-19
    DOI: 10.1016/j.ejpoleco.2013.11.001
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    Cited by:

    1. Köppl Turyna, Monika, 2014. "Two-candidate competition with endogenous valence: a differential game approach," MPRA Paper 64203, University Library of Munich, Germany.
    2. Köppl-Turyna, Monika, 2017. "Public funding of parties and political polarization," Working Papers 03, Agenda Austria.
    3. Thanh Le & Erkan Yalcin, 2023. "Lobbying, political competition and the welfare effect of campaign contribution tax," Scottish Journal of Political Economy, Scottish Economic Society, vol. 70(2), pages 158-179, May.
    4. Miettinen, Topi & Poutvaara, Panu, 2015. "Parties as efficiency-improving gatekeepers in rent-seeking societies," European Journal of Political Economy, Elsevier, vol. 38(C), pages 87-101.
    5. Köppl Turyna, Monika, 2015. "How asymmetric funding of parties can lead to political polarization," MPRA Paper 64200, University Library of Munich, Germany.
    6. Le, Thanh & Yalcin, Erkan, 2018. "Lobbying, campaign contributions, and electoral competition," European Journal of Political Economy, Elsevier, vol. 55(C), pages 559-572.

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    More about this item

    Keywords

    Interest groups; Political campaigns;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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