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The impact of campaign expenditures on political competition in the French legislative elections of 1993

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  • Filip Palda
  • Kristian Palda

Abstract

We use regression analysis to estimate the effect that campaign money had on the votes of challengers and incumbents in the 1993 elections to the French legislative assembly. Incumbent candidates can at best expect to win 1.01% of the popular vote for each extra franc they spend per registered voter in their district. Challengers can expect to win at least twice as much as this. Simulations show that if campaign spending ceilings were halved, incumbents would have gained an extra ten percent of the popular vote over their closest challenging rivals. The regression analysis also suggests that voters react negatively to candidates who rely heavily on their own money for their outlays and reward candidates who rely on contributions from private individuals. These results suggest that campaign spending ceilings may inhibit political competition, and that voters may resist a candidate who relies on narrow sources of funding. Copyright Kluwer Academic Publishers 1998

Suggested Citation

  • Filip Palda & Kristian Palda, 1998. "The impact of campaign expenditures on political competition in the French legislative elections of 1993," Public Choice, Springer, vol. 94(1), pages 157-174, January.
  • Handle: RePEc:kap:pubcho:v:94:y:1998:i:1:p:157-174
    DOI: 10.1023/A:1004942118179
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    References listed on IDEAS

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    1. Ray C. Fair, 1996. "Econometrics and Presidential Elections," Journal of Economic Perspectives, American Economic Association, vol. 10(3), pages 89-102, Summer.
    2. Palda, Kristian S, 1975. "The Effect of Expenditure on Political Success," Journal of Law and Economics, University of Chicago Press, vol. 18(3), pages 745-771, December.
    3. Palda Filip & Palda Kristian, 1991. "Campaign Spending And Campaign Finance Issues : An Economic View," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 2(2-3), pages 1-24, June.
    4. Jacobson, Gary C., 1978. "The Effects of Campaign Spending in Congressional Elections," American Political Science Review, Cambridge University Press, vol. 72(2), pages 469-491, June.
    5. Palda, Kristian S, 1975. "The Effect of Expenditure on Political Success: Reply," Journal of Law and Economics, University of Chicago Press, vol. 18(3), pages 779-780, December.
    6. K. Palda & Kristian Palda, 1985. "Ceilings on campaign spending: Hypothesis and partial test with Canadian data," Public Choice, Springer, vol. 45(3), pages 313-331, January.
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    Cited by:

    1. Kenneth Benoit & Michael Marsh, 2008. "The Campaign Value of Incumbency: A New Solution to the Puzzle of Less Effective Incumbent Spending," American Journal of Political Science, John Wiley & Sons, vol. 52(4), pages 874-890, October.
    2. Manfred Dix & Rudy Santore, 2003. "Campaign Contributions with Swing Voters," Economics and Politics, Wiley Blackwell, vol. 15(3), pages 285-301, November.
    3. Prat, A., 1998. "Campaign Spending with Office-Seeking Politicians, Rational Voters and Multiple Lobbies," Other publications TiSEM 30b6424e-efe1-48c7-9709-7, Tilburg University, School of Economics and Management.
    4. Bombardini, Matilde & Trebbi, Francesco, 2011. "Votes or money? Theory and evidence from the US Congress," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 587-611, August.
    5. Kevin Milligan & Marie Rekkas, 2008. "Campaign spending limits, incumbent spending, and election outcomes," Canadian Journal of Economics, Canadian Economics Association, vol. 41(4), pages 1351-1374, November.
    6. Yasmine Bekkouche & Julia Cage, 2018. "The Price of a Vote: Evidence from France, 1993-2014," Working Papers Series 68, Institute for New Economic Thinking.
    7. Bekkouche, Yasmine & Cagé, Julia & Dewitte, Edgard, 2020. "The Heterogeneous Price of a Vote: Evidence from Multiparty Systems, 1993-2017," CEPR Discussion Papers 15150, C.E.P.R. Discussion Papers.
    8. Freille, S. & Avramovich, C. & Moncarz, P. & Sofietti, P., 2019. "Inside the revolving door: campaign finance, lobbying meetings and public contracts. An investigation for Argentina," Research Department working papers 1392, CAF Development Bank Of Latinamerica.
    9. Prat, Andrea, 2002. "Campaign Spending with Office-Seeking Politicians, Rational Voters, and Multiple Lobbies," Journal of Economic Theory, Elsevier, vol. 103(1), pages 162-189, March.
    10. Yasmine Bekkouche & Julia Cage, 2019. "The Heterogeneous Price of a Vote: Evidence from France, 1993-2014," Sciences Po Economics Discussion Papers 2019-09, Sciences Po Departement of Economics.
    11. Freille, Sebastián, 2015. "Do private campaing contributions affect electoral results? An examination of Argentine national elections," MPRA Paper 65455, University Library of Munich, Germany.
    12. Potters, Jan & Sloof, Randolph, 1996. "Interest groups: A survey of empirical models that try to assess their influence," European Journal of Political Economy, Elsevier, vol. 12(3), pages 403-442, November.
    13. Fergusson, Leopoldo, 2014. "Media markets, special interests, and voters," Journal of Public Economics, Elsevier, vol. 109(C), pages 13-26.
    14. Hung-Hao Chang & Chad Meyerhoefer, 2020. "Do Elections Make You Sick?," NBER Working Papers 26697, National Bureau of Economic Research, Inc.
    15. Raphael Boleslavsky & Christopher Cotton, 2015. "Information and Extremism in Elections," American Economic Journal: Microeconomics, American Economic Association, vol. 7(1), pages 165-207, February.
    16. Simone Righi, 2015. "Campaign Spending and Rents in a Probabilistic Voting Model," Department of Economics 0073, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    17. Abel François & Michael Visser & Lionel Wilner, 2016. "Using Political Financing Reforms to Measure Campaign Spending Effects on Electoral Outcomes," CESifo Working Paper Series 6232, CESifo.
    18. Farvaque, Etienne & Foucault, Martial & Vigeant, Stéphane, 2020. "The politician and the vote factory: Candidates’ resource management skills and electoral returns," Journal of Policy Modeling, Elsevier, vol. 42(1), pages 38-55.
    19. Alexandre Couture Gagnon, 2018. "Filip Palda: In memoriam," Public Choice, Springer, vol. 174(3), pages 213-217, March.

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