Campaign spending limits, incumbent spending, and election outcomes

Kevin Milligan and Marie Rekkas

Canadian Journal of Economics, 2008, vol. 41, issue 4, 1351-1374

Abstract: We study the impact of campaign spending limits for candidates in Canadian federal elections. We first demonstrate that spending limits are binding mostly for incumbent candidates. We then use this information to produce endogeneity-corrected estimates for the impact of incumbent spending on electoral vote shares. Furthermore, we examine the impact of spending limits on broader measures of electoral outcomes, finding that larger limits lead to less close elections, fewer candidates, and lower voter turnout.

Date: 2008
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