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Inequality and Cost of Electoral Campaigns in Latin America

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  • Maurício Bugarin
  • Adriana Portugal
  • Sérgio Sakurai

Abstract

This article explores theoretic and empirically the effects of inequality on the cost of electoral campaigns. An electoral competition model suggests that electoral campaigns costs increase with the level of inequality. That result stresses the need of careful campaign financing regulation in highlyunequal Latin America. An econometric analysis of Brazilian 2002 and 2004 elections at the state and municipal levels confirms that result, especially for the municipal elections. Moreover, according to the empirical results, the lower the age dispersion and the higher the education dispersion of voters, the more expensive are the electoral campaigns.

Suggested Citation

  • Maurício Bugarin & Adriana Portugal & Sérgio Sakurai, 2008. "Inequality and Cost of Electoral Campaigns in Latin America," Working Papers 08_14, Universidade de São Paulo, Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto.
    • Handle: RePEc:fea:wpaper:08_14
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    References listed on IDEAS

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    1. Martin J. Osborne, 1995. "Spatial Models of Political Competition under Plurality Rule: A Survey of Some Explanations of the Number of Candidates and the Positions They Take," Canadian Journal of Economics, Canadian Economics Association, vol. 28(2), pages 261-301, May.
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    7. Adriana Cuocco Portuga & Mauricio Bugarin, 2007. "Electoral Campaign Financing: The Role of Public Contributions and Party Ideology," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2007), pages 143-177, August.
    8. Portugal, Adriana C. & Bugarin, Maurício, 2007. "Electoral Campaign Financing: The role of public contributions and party ideology," Insper Working Papers wpe_102, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
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    More about this item

    Keywords

    Electoral campaign costs; income inequality; party ideology; electoral competition;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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