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Soft money and hard choices: Why political parties might legislate against soft money donations

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  • David Gill
  • Christine Lipsmeyer

Abstract

In contrast to the bulk of the campaign finance literature that highlights political action committee (PAC) contributions and single donations, this paper emphasizes soft money and the rationale for dual contributions. Employing a formal model of unregulated contributions and political access, we show that donors will rationally choose to contribute to both political parties. While the parties accept these dual contributions, they lead to an imbalance between the benefits of contributions and the costs of providing access. This race to acquire unlimited soft money leads to a situation where the parties agree to campaign finance reform legislation. Copyright Springer Science + Business Media, Inc. 2005

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  • David Gill & Christine Lipsmeyer, 2005. "Soft money and hard choices: Why political parties might legislate against soft money donations," Public Choice, Springer, vol. 123(3), pages 411-438, June.
    • Handle: RePEc:kap:pubcho:v:123:y:2005:i:3:p:411-438
    DOI: 10.1007/s11127-005-7169-y
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    References listed on IDEAS

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    Cited by:

    1. Tahiru Azaaviele Liedong, 2022. "The Liability of Tribe in Corporate Political Activity: Ethical Implications for Political Contestability," Journal of Business Ethics, Springer, vol. 181(3), pages 623-644, December.

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