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How asymmetric funding of parties can lead to political polarization

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  • Köppl Turyna, Monika

Abstract

This work analyzes the impact of asymmetric financial constraints on the platforms of parties using a formal model of elections. Main results show that when a party faces a tight financial constraint the platform chosen in equilibrium is further away from its ideal point compared to the case when the campaign expenses are not limited. Moreover, we have shown that the platform of the party which is facing a tighter financial constraint is further away from its ideal point than of the opponent. These results show the theoretical foundations for the empirical observations made, about the impact of public funding of parties on their platforms.

Suggested Citation

  • Köppl Turyna, Monika, 2015. "How asymmetric funding of parties can lead to political polarization," MPRA Paper 64200, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:64200
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    References listed on IDEAS

    as
    1. Herrera, Helios & Levine, David K. & Martinelli, César, 2008. "Policy platforms, campaign spending and voter participation," Journal of Public Economics, Elsevier, vol. 92(3-4), pages 501-513, April.
    2. Köppl-Turyna, Monika, 2014. "Campaign finance regulations and policy convergence: The role of interest groups and valence," European Journal of Political Economy, Elsevier, vol. 33(C), pages 1-19.
    3. Ignacio Ortuno‐Ortín & Christian Schultz, 2005. "Public Funding of Political Parties," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 7(5), pages 781-791, December.
    4. Troumpounis, Orestis, 2012. "On the distribution of public funding to political parties," Economics Letters, Elsevier, vol. 116(3), pages 367-370.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    campaign finance; polarization; endogenous valence; public funding;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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