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Campaign spending regulation in a model of redistributive politics

Author

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  • Nicolas Sahuguet
  • Nicola Persico

Abstract

We consider a model in which parties that differ in perceived valence choose how to allocate electoral promises (money, pork-barrel projects) among voters. The party perceived to be less valent has a greater incentive to “sell out” to a favored minority and completely expropriate a fraction of the electorate. By reducing the difference in perceived valence, campaign-finance regulations may reduce the extent of the expropriation and achieve a more equitable political outcome. We analyze various instruments of campaign-finance regulation from this perspective. Copyright Springer-Verlag Berlin/Heidelberg 2006

Suggested Citation

  • Nicolas Sahuguet & Nicola Persico, 2006. "Campaign spending regulation in a model of redistributive politics," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 28(1), pages 95-124, May.
    • Handle: RePEc:spr:joecth:v:28:y:2006:i:1:p:95-124
    DOI: 10.1007/s00199-005-0610-0
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