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The Campaign Value of Incumbency: A New Solution to the Puzzle of Less Effective Incumbent Spending

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  • Kenneth Benoit
  • Michael Marsh

Abstract

A puzzle in research on campaign spending is that while expenditure is positively related to votes won, this effect is far more strongly, or even exclusively, enjoyed by challengers rather than by incumbents. We unearth a new explanation for the puzzle, focusing on the hidden, yet variable, campaign value of office perquisites which incumbents deploy in their campaigns to win votes. When these variable office benefits are unobserved, then the effect is to make observed incumbent spending less effective than spending by challengers. Using data from the 2002 Irish general election, where incumbency was assigned a variable campaign value and included in declared campaign spending, we are able to demonstrate this hidden incumbency effect and estimate its relationship to electoral success, in terms of overall votes, share of votes, and probability of winning a seat. Contrary to previous research showing ineffective incumbent spending, we find that when the campaign value of office is also measured, public office value “spending” is not only very effective in winning votes, but also seems to be more effective than regular incumbent spending.

Suggested Citation

  • Kenneth Benoit & Michael Marsh, 2008. "The Campaign Value of Incumbency: A New Solution to the Puzzle of Less Effective Incumbent Spending," American Journal of Political Science, John Wiley & Sons, vol. 52(4), pages 874-890, October.
    • Handle: RePEc:wly:amposc:v:52:y:2008:i:4:p:874-890
    DOI: 10.1111/j.1540-5907.2008.00348.x
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    Cited by:

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    5. Redmond, Paul & Regan, John, 2015. "Incumbency advantage in a proportional electoral system: A regression discontinuity analysis of Irish elections," European Journal of Political Economy, Elsevier, vol. 38(C), pages 244-256.
    6. Bekkouche, Yasmine & Cagé, Julia & Dewitte, Edgard, 2022. "The heterogeneous price of a vote: Evidence from multiparty systems, 1993–2017," Journal of Public Economics, Elsevier, vol. 206(C).
    7. Bruno Carvalho, 2021. "Campaign Spending in Local Elections: the Effects of Public Funding," Working Papers ECARES 2021-30, ULB -- Universite Libre de Bruxelles.
    8. Greiner, Michael & Kim, Jaemin & Cordon Thor, Jennifer, 2023. "Narcissistic CEOs and their corporate political activity," Journal of Business Research, Elsevier, vol. 163(C).
    9. Laurent Bouton & Micael Castanheira & Allan Drazen, 2024. "A Theory of Small Campaign Contributions," The Economic Journal, Royal Economic Society, vol. 134(662), pages 2351-2390.
    10. Bekkouche, Yasmine & Cagé, Julia & Dewitte, Edgard, 2022. "The heterogeneous price of a vote: Evidence from multiparty systems, 1993–2017," Journal of Public Economics, Elsevier, vol. 206(C).
    11. Julia Cage & Edgard Dewitte, 2021. "It Takes Money to Make MPs: Evidence from 150 Years of British Campaign Spending," SciencePo Working papers hal-03384143, HAL.
    12. Kei Kawai, 2013. "Campaign Finance in U.S. House Elections," 2013 Meeting Papers 1158, Society for Economic Dynamics.
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