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The Impact of Campaign Spending on Votes in Multiparty Elections

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  • Marie Rekkas

    (Department of Economics, Simon Fraser University)

Abstract

The impact of candidate campaign spending on votes and abstention in multiparty elections is estimated from the specification of a structural model of voter behavior. This model accounts for the endogeneity of campaign spending as well as the heterogeneity in voter preferences. Empirical results are estimated from aggregate (actual) election data. The results demonstrate the importance of spending during the campaign period and voter heterogeneity with respect to these expenditures. The own- and cross-expenditure vote share elasticity estimates reveal that political campaign spending not only redistributes voters across parties but also decreases the size of the abstaining group of the electorate. Copyright by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Suggested Citation

  • Marie Rekkas, 2007. "The Impact of Campaign Spending on Votes in Multiparty Elections," The Review of Economics and Statistics, MIT Press, vol. 89(3), pages 573-585, August.
    • Handle: RePEc:tpr:restat:v:89:y:2007:i:3:p:573-585
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    Cited by:

    1. repec:hal:spmain:info:hdl:2441/2ahul47tb09rvqfl9eelv7o5ca is not listed on IDEAS
    2. Brett R. Gordon & Wesley R. Hartmann, 2013. "Advertising Effects in Presidential Elections," Marketing Science, INFORMS, vol. 32(1), pages 19-35, June.
    3. Bernardo S. Da Silveira & João M. P. De Mello, 2011. "Campaign Advertising and Election Outcomes: Quasi-natural Experiment Evidence from Gubernatorial Elections in Brazil," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 78(2), pages 590-612.
    4. Bruno Carvalho, 2021. "Campaign Spending in Local Elections: the Effects of Public Funding," Working Papers ECARES 2021-30, ULB -- Universite Libre de Bruxelles.
    5. Bekkouche, Yasmine & Cagé, Julia & Dewitte, Edgard, 2022. "The heterogeneous price of a vote: Evidence from multiparty systems, 1993–2017," Journal of Public Economics, Elsevier, vol. 206(C).
    6. I Gede Sthitaprajna Virananda & Teguh Dartanto & Bintang Dara Wijaya, 2021. "Does Money Matter for Electability? Lesson Learned From the 2014 Legislative Election in Indonesia," SAGE Open, , vol. 11(4), pages 21582440211, October.
    7. Kräkel, Matthias & Nieken, Petra & Przemeck, Judith, 2014. "Risk taking and investing in electoral competition," European Journal of Political Economy, Elsevier, vol. 33(C), pages 98-120.
    8. Yasmine Bekkouche & Julia Cage, 2019. "The Heterogeneous Price of a Vote: Evidence from France, 1993-2014," SciencePo Working papers Main hal-03393084, HAL.
    9. Cagé, Julia & Bekkouche, Yasmine, 2018. "The Heterogeneous Price of a Vote: Evidence from France, 1993-2014," CEPR Discussion Papers 12614, C.E.P.R. Discussion Papers.
    10. Bekkouche, Yasmine & Cagé, Julia & Dewitte, Edgard, 2022. "The heterogeneous price of a vote: Evidence from multiparty systems, 1993–2017," Journal of Public Economics, Elsevier, vol. 206(C).
    11. Kevin Milligan & Marie Rekkas, 2008. "Campaign spending limits, incumbent spending, and election outcomes," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 41(4), pages 1351-1374, November.
    12. Nathan Canen & Kristopher Ramsay, 2023. "Quantifying Theory in Politics: Identification, Interpretation and the Role of Structural Methods," Papers 2302.01897, arXiv.org.
    13. Abel François & Michael Visser & Lionel Wilner, 2022. "The petit effect of campaign spending on votes: using political financing reforms to measure spending impacts in multiparty elections," Public Choice, Springer, vol. 192(1), pages 29-57, July.
    14. Matias Iaryczower & Andrea Mattozzi, 2012. "The pro-competitive effect of campaign limits in non-majoritarian elections," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 49(3), pages 591-619, April.
    15. Arianna Degan, 2013. "Civic duty and political advertising," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 52(2), pages 531-564, March.
    16. 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.
    17. John Maloney & Andrew Pickering, 2013. "Political Competition, Political Donations, Economic Policy and Growth," Discussion Papers 13/21, Department of Economics, University of York.
    18. repec:hal:spmain:info:hdl:2441/10lirmbd5p8h4ae52oi51b4cka is not listed on IDEAS
    19. Wang, Ao, 2021. "A BLP Demand Model of Product-Level Market Shares with Complementarity," The Warwick Economics Research Paper Series (TWERPS) 1351, University of Warwick, Department of Economics.
    20. Tang, Meng-Chi & Huang, Ya-Wei, 2022. "The effect of endogenous campaign spending and voter heterogeneity on candidates' vote share: Empirical evidence from Taiwanese local elections," Economic Modelling, Elsevier, vol. 114(C).
    21. repec:hal:wpspec:info:hdl:2441/2ahul47tb09rvqfl9eelv7o5ca is not listed on IDEAS
    22. John Maloney & Andrew Pickering, 2018. "The Economic Consequences of Political Donation Limits," Economica, London School of Economics and Political Science, vol. 85(339), pages 479-517, July.
    23. repec:hal:wpspec:info:hdl:2441/10lirmbd5p8h4ae52oi51b4cka is not listed on IDEAS
    24. Yasmine Bekkouche & Julia Cage & Edgard Dewitte, 2022. "The Heterogeneous Price of a Vote: Evidence from Multiparty Systems, 1993-2017," SciencePo Working papers Main hal-03389172, HAL.

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