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Self-Funding of Political Campaigns

Author

Listed:
  • Alexei V. Ovtchinnikov

    (Department of Finance, HEC Paris, 78351 Jouy-en-Josas, France)

  • Philip Valta

    (Institute for Financial Management, University of Bern, 3012 Bern, Switzerland)

Abstract

Candidate self-funding, in particular self-loans, is a significant source of funding of political campaigns. Self-funding clusters among nonincumbent campaigns, republican campaigns, and more expensive campaigns. Self-funded campaigns raise less money from individuals and special interests and also spend less. Self-funders are wealthier on average and run in more competitive elections. The analysis of self-funders’ legislative decisions shows that self-funders’ votes, especially those of republicans, are significantly more sensitive to contributions from special interests that are affected by the votes. The results highlight the importance of considering politicians’ self-funding choices in analyzing voting behavior and the value of political activism.

Suggested Citation

  • Alexei V. Ovtchinnikov & Philip Valta, 2023. "Self-Funding of Political Campaigns," Management Science, INFORMS, vol. 69(4), pages 2425-2448, April.
    • Handle: RePEc:inm:ormnsc:v:69:y:2023:i:4:p:2425-2448
    DOI: 10.1287/mnsc.2022.4404
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    References listed on IDEAS

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