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The impact of campaign expenditures on political competition in the French legislative elections of 1993

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  • Filip Palda
  • Kristian Palda

Abstract

We use regression analysis to estimate the effect that campaign money had on the votes of challengers and incumbents in the 1993 elections to the French legislative assembly. Incumbent candidates can at best expect to win 1.01% of the popular vote for each extra franc they spend per registered voter in their district. Challengers can expect to win at least twice as much as this. Simulations show that if campaign spending ceilings were halved, incumbents would have gained an extra ten percent of the popular vote over their closest challenging rivals. The regression analysis also suggests that voters react negatively to candidates who rely heavily on their own money for their outlays and reward candidates who rely on contributions from private individuals. These results suggest that campaign spending ceilings may inhibit political competition, and that voters may resist a candidate who relies on narrow sources of funding. Copyright Kluwer Academic Publishers 1998

Suggested Citation

  • Filip Palda & Kristian Palda, 1998. "The impact of campaign expenditures on political competition in the French legislative elections of 1993," Public Choice, Springer, vol. 94(1), pages 157-174, January.
    • Handle: RePEc:kap:pubcho:v:94:y:1998:i:1:p:157-174
    DOI: 10.1023/A:1004942118179
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    1. Palda Filip & Palda Kristian, 1991. "Campaign Spending And Campaign Finance Issues : An Economic View," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 2(2-3), pages 291-314, June.
    2. Ray C. Fair, 1996. "Econometrics and Presidential Elections," Journal of Economic Perspectives, American Economic Association, vol. 10(3), pages 89-102, Summer.
    3. Palda, Kristian S, 1975. "The Effect of Expenditure on Political Success," Journal of Law and Economics, University of Chicago Press, vol. 18(3), pages 745-771, December.
    4. Jacobson, Gary C., 1978. "The Effects of Campaign Spending in Congressional Elections," American Political Science Review, Cambridge University Press, vol. 72(2), pages 469-491, June.
    5. Levitt, Steven D, 1994. "Using Repeat Challengers to Estimate the Effect of Campaign Spending on Election Outcomes in the U.S. House," Journal of Political Economy, University of Chicago Press, vol. 102(4), pages 777-798, August.
    6. Palda, Kristian S, 1975. "The Effect of Expenditure on Political Success: Reply," Journal of Law and Economics, University of Chicago Press, vol. 18(3), pages 779-780, December.
    7. K. Palda & Kristian Palda, 1985. "Ceilings on campaign spending: Hypothesis and partial test with Canadian data," Public Choice, Springer, vol. 45(3), pages 313-331, January.
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