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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. repec:cup:apsrev:v:72:y:1978:i:02:p:469-491_15 is not listed on IDEAS
    4. 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.
    5. 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. 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.
    2. Fergusson, Leopoldo, 2014. "Media markets, special interests, and voters," Journal of Public Economics, Elsevier, vol. 109(C), pages 13-26.
    3. 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.
    4. Raphael Boleslavsky & Christopher Cotton, 2015. "Information and Extremism in Elections," American Economic Journal: Microeconomics, American Economic Association, vol. 7(1), pages 165-207, February.
    5. 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".
    6. Abel Fran├žois & Michael Visser & Lionel Wilner, 2016. "Using Political Financing Reforms to Measure Campaign Spending Effects on Electoral Outcomes," CESifo Working Paper Series 6232, CESifo Group Munich.
    7. 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.
    8. repec:kap:pubcho:v:174:y:2018:i:3:d:10.1007_s11127-018-0504-x is not listed on IDEAS
    9. Freille, Sebastián, 2015. "Do private campaing contributions affect electoral results? An examination of Argentine national elections," MPRA Paper 65455, University Library of Munich, Germany.

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