IDEAS home Printed from https://ideas.repec.org/p/cla/levarc/122247000000000960.html
   My bibliography  Save this paper

Is Private Campaign Finance a Good Thing? Estimates of the Potential Informational Benefits

Author

Listed:
  • Andrea Prat
  • Riccardo Puglisi
  • James Snyder

Abstract

What would happen if the current U.S. campaign finance system, mostly based on private donations, were replaced by a public funding scheme of the same magnitude? Some argue that public funding would deprive voters of useful information, but this can only be true if private donations are somehow targeted to "better" candidates. In this paper, we ask what voters can learn about the "effectiveness" of a legislator from the amount and pattern of contributions received during the campaign. We find that the total amount that a candidate receives is a positive, but weak, predictor of that candidate's effectiveness. Small contributions provide a strong and positive signal of effectiveness, while large contributions are a negative signal of effectiveness. Contributions from organizations also provide a positive signal, while contributions from individuals, parties, and candidates themselves do not.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Andrea Prat & Riccardo Puglisi & James Snyder, 2005. "Is Private Campaign Finance a Good Thing? Estimates of the Potential Informational Benefits," Levine's Working Paper Archive 122247000000000960, David K. Levine.
    • Handle: RePEc:cla:levarc:122247000000000960
    as

    Download full text from publisher

    File URL: http://www.dklevine.com/archive/refs4122247000000000960.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Stephen Ansolabehere & John M. de Figueiredo & James M. Snyder Jr, 2003. "Why is There so Little Money in U.S. Politics?," Journal of Economic Perspectives, American Economic Association, vol. 17(1), pages 105-130, Winter.
    2. Potters, Jan & Sloof, Randolph & van Winden, Frans, 1997. "Campaign expenditures, contributions and direct endorsements: The strategic use of information and money to influence voter behavior," European Journal of Political Economy, Elsevier, vol. 13(1), pages 1-31, February.
    3. Weingast, Barry R. & Wittman, Donald, 2008. "The Oxford Handbook of Political Economy," OUP Catalogue, Oxford University Press, number 9780199548477.
    4. Andrea Prat, 2002. "Campaign Advertising and Voter Welfare," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 69(4), pages 999-1017.
    5. Stephen Coate, 2004. "Pareto-Improving Campaign Finance Policy," American Economic Review, American Economic Association, vol. 94(3), pages 628-655, June.
    6. Steven D. Levitt, 1995. "Policy Watch: Congressional Campaign Finance Reform," Journal of Economic Perspectives, American Economic Association, vol. 9(1), pages 183-193, Winter.
    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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:hal:spmain:info:hdl:2441/2ahul47tb09rvqfl9eelv7o5ca is not listed on IDEAS
    2. repec:hal:spmain:info:hdl:2441/7rcgbs4v788terphdvb6a5e8t8 is not listed on IDEAS
    3. 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).
    4. 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.
    5. Yasmine Bekkouche & Julia Cage, 2018. "The Price of a Vote: Evidence from France, 1993-2014," Working Papers Series 68, Institute for New Economic Thinking.
    6. Amit Gandhi & Daniela Iorio & Carly Urban, 2016. "Negative Advertising and Political Competition," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 32(3), pages 433-477.
    7. Elena Panova, 2007. "Congruence Among Voters and Contributions to Political Campaigns," Cahiers de recherche 0722, CIRPEE.
    8. Fergusson, Leopoldo, 2014. "Media markets, special interests, and voters," Journal of Public Economics, Elsevier, vol. 109(C), pages 13-26.
    9. Petrova, Maria & Yildirim, Pinar & Sen, Ananya, 2017. "Social Media and Political Donations: New Technology and Incumbency Advantage in the United States," CEPR Discussion Papers 11808, C.E.P.R. Discussion Papers.
    10. Klumpp, Tilman & Mialon, Hugo & Williams, Michael, 2012. "Matching Funds in Public Campaign Finance," Working Papers 2012-20, University of Alberta, Department of Economics.
    11. Julia Cage & Yasmine Bekkouche, 2018. "The Price of a Vote: Evidence from France, 1993-2014," SciencePo Working papers Main hal-03393149, HAL.
    12. repec:hal:wpspec:info:hdl:2441/2ahul47tb09rvqfl9eelv7o5ca is not listed on IDEAS
    13. Brendan Daley & Erik Snowberg, 2007. "A MultiDimensional Signaling Model of Campaign Finance," Discussion Papers 06-027, Stanford Institute for Economic Policy Research.
    14. repec:hal:wpspec:info:hdl:2441/10lirmbd5p8h4ae52oi51b4cka is not listed on IDEAS
    15. Vanberg, Christoph, 2008. ""One Man, One Dollar"? Campaign contribution limits, equal influence, and political communication," Journal of Public Economics, Elsevier, vol. 92(3-4), pages 514-531, April.
    16. Yasmine Bekkouche & Julia Cage, 2018. "The Price of a Vote: Evidence from France, 1993-2014," Working Papers Series 68, Institute for New Economic Thinking.
    17. 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).
    18. Schnakenberg, Keith & Turner, Ian R, 2023. "Dark Money and Politician Learning," SocArXiv 3bzex, Center for Open Science.
    19. Schnakenberg, Keith & Schumock, Collin & Turner, Ian R, 2023. "Dark Money and Voter Learning," SocArXiv r562d, Center for Open Science.
    20. Yasmine Bekkouche & Julia Cage, 2019. "The Heterogeneous Price of a Vote: Evidence from France, 1993-2014," SciencePo Working papers Main hal-03393084, HAL.
    21. 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.
    22. repec:hal:spmain:info:hdl:2441/10lirmbd5p8h4ae52oi51b4cka is not listed on IDEAS

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Prat, Andrea & Puglisi, Riccardo & Snyder, James M., 2010. "Is Private Campaign Finance a Good Thing? Estimates of the Potential Informational Benefits," Quarterly Journal of Political Science, now publishers, vol. 5(3), pages 291-318, December.
    2. 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).
    3. Thomas Bassetti & Filippo Pavesi, 2017. "Electoral Contributions And The Cost Of Unpopularity," Economic Inquiry, Western Economic Association International, vol. 55(4), pages 1771-1791, October.
    4. 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).
    5. Yasmine Bekkouche & Julia Cage, 2019. "The Heterogeneous Price of a Vote: Evidence from France, 1993-2014," SciencePo Working papers Main hal-03393084, HAL.
    6. 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.
    7. 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.
    8. Elena Panova, 2007. "Congruence Among Voters and Contributions to Political Campaigns," Cahiers de recherche 0722, CIRPEE.
    9. repec:hal:spmain:info:hdl:2441/10lirmbd5p8h4ae52oi51b4cka is not listed on IDEAS
    10. repec:hal:spmain:info:hdl:2441/2ahul47tb09rvqfl9eelv7o5ca is not listed on IDEAS
    11. repec:hal:wpspec:info:hdl:2441/2ahul47tb09rvqfl9eelv7o5ca is not listed on IDEAS
    12. repec:hal:wpspec:info:hdl:2441/10lirmbd5p8h4ae52oi51b4cka is not listed on IDEAS
    13. Julia Cage & Yasmine Bekkouche, 2018. "The Price of a Vote: Evidence from France, 1993-2014," Sciences Po publications 12614, Sciences Po.
    14. Thomas Bassetti & Filippo Pavesi, 2012. "Deep Pockets, Extreme Preferences: Interest Groups and Campaign Finance Contributions," Working Papers 222, University of Milano-Bicocca, Department of Economics, revised Apr 2012.
    15. Matthias Dahm & Nicolás Porteiro, 2008. "Side Effects of Campaign Finance Reform," Journal of the European Economic Association, MIT Press, vol. 6(5), pages 1057-1077, September.
    16. Matthew T. Cole & Ivan Pastine & Tuvana Pastine, 2018. "Incumbency Advantage in an Electoral Contest," The Economic and Social Review, Economic and Social Studies, vol. 49(4), pages 419-436.
    17. Christoph Vanberg, 2005. "“One Man, One Dollar”? Examining the equalization argument in support of campaign contribution limits," Public Economics 0512001, University Library of Munich, Germany.
    18. Julia Cage & Yasmine Bekkouche, 2018. "The Price of a Vote: Evidence from France, 1993-2014," SciencePo Working papers Main hal-03393149, HAL.
    19. repec:hal:spmain:info:hdl:2441/7rcgbs4v788terphdvb6a5e8t8 is not listed on IDEAS
    20. Davin Raiha, 2018. "Economic influence activities," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 27(4), pages 830-843, October.
    21. 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.
    22. Daniel Houser & Thomas Stratmann, 2008. "Selling favors in the lab: experiments on campaign finance reform," Public Choice, Springer, vol. 136(1), pages 215-239, July.
    23. Roberti, Paolo, 2019. "Citizens or lobbies: Who controls policy?," Games and Economic Behavior, Elsevier, vol. 113(C), pages 497-514.
    24. Thomas Stratmann, 2005. "Some talk: Money in politics. A (partial) review of the literature," Public Choice, Springer, vol. 124(1), pages 135-156, July.
    25. Yasmine Bekkouche & Julia Cage, 2018. "The Price of a Vote: Evidence from France, 1993-2014," Working Papers Series 68, Institute for New Economic Thinking.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cla:levarc:122247000000000960. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: David K. Levine (email available below). General contact details of provider: http://www.dklevine.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.