Political Support for a Private System of Financing Political Campaigns

Jenny De Freitas

FinanzArchiv: Public Finance Analysis, 2011, vol. 67, issue 4, 352-377

Abstract: 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.

Keywords: political economy; redistribution; campaign finance (search for similar items in EconPapers)
JEL-codes: D70 D72 P16 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (1)

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DOI: 10.1628/001522108X614169

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