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Political Support for a Private System of Financing Political Campaigns

Listed author(s):
  • Jenny De Freitas

In a context where parties announce an income tax and spend contributions received in campaign advertising, we compare two methods of financing political campaigns: the public and the private system. Under the public system, parties receive public funds in proportion to their voting share. Under the private system, voters contribute to political campaigns to increase a party's probability of winning. Competition for contributions may induce excessive campaign spending under the private system. Still, it may be supported by a majority of voters, given the indirect effect contributions have on the equilibrium tax and a party's probability of winning.

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Article provided by Mohr Siebeck, Tübingen in its journal FinanzArchiv.

Volume (Year): 67 (2011)
Issue (Month): 4 (December)
Pages: 352-377

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Handle: RePEc:mhr:finarc:urn:sici:0015-2218(291112)67:4_352:psfaps_2.0.tx_2-q
DOI: 10.1628/001522108X614169
Contact details of provider: Web page: https://www.mohr.de/fa

Order Information: Postal: Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany
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  1. 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.
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  8. Amihai Glazer & Mark Gradstein, 2005. "Elections with contribution-maximizing candidates," Public Choice, Springer, vol. 122(3), pages 467-482, March.
  9. Wittman, Donald, 1977. "Candidates with policy preferences: A dynamic model," Journal of Economic Theory, Elsevier, vol. 14(1), pages 180-189, February.
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