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The Market For Campaign Contributions: Evidence For The U.S. Senate 1980–1986

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  • JAMES M. SNYDER

Abstract

This paper tests a simple asset market model of campaign contributions, using data from recent U.S. Senate races. When applied to “investor” PACs, the model performs surprisingly well, and suggests that the contributions market is relatively efficient. When applied to “ideological” PACs, political parties, and individuals, the model is rejected. The results not only provide empirical support for the model, but also point out important differences in the apparent motives behind different types of contributions.

Suggested Citation

  • James M. Snyder, 1993. "The Market For Campaign Contributions: Evidence For The U.S. Senate 1980–1986," Economics and Politics, Wiley Blackwell, vol. 5(3), pages 219-240, November.
    • Handle: RePEc:bla:ecopol:v:5:y:1993:i:3:p:219-240
    DOI: 10.1111/j.1468-0343.1993.tb00076.x
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    Cited by:

    1. Potters, Jan & Sloof, Randolph, 1996. "Interest groups: A survey of empirical models that try to assess their influence," European Journal of Political Economy, Elsevier, vol. 12(3), pages 403-442, November.
    2. Correia, Maria M., 2014. "Political connections and SEC enforcement," Journal of Accounting and Economics, Elsevier, vol. 57(2), pages 241-262.

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