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A theory of small campaign contributions

Author: Laurent Bouton; Micael Castanheira; Allan Drazen; National Bureau of Economic Research,
Publisher: Cambridge, Mass. : National Bureau of Economic Research, 2018.
Series: Working paper series (National Bureau of Economic Research), no. 24413.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
We present a model of electorally-motivated, small campaign contributions. The analysis uncovers interesting interactions among small donors and has novel implications for the effect of income inequality on total contributions and election outcomes. Moreover, it helps explain a number of empirical observations that seem anomalous when contributions are driven by the consumption or the influence motives. We also  Read more...
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Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Laurent Bouton; Micael Castanheira; Allan Drazen; National Bureau of Economic Research,
OCLC Number: 1029056018
Notes: "March 2018."
Description: 1 online resource (41 pages) : illustrations
Series Title: Working paper series (National Bureau of Economic Research), no. 24413.
Responsibility: Laurent Bouton, Micael Castanheira, Allan Drazen.

Abstract:

We present a model of electorally-motivated, small campaign contributions. The analysis uncovers interesting interactions among small donors and has novel implications for the effect of income inequality on total contributions and election outcomes. Moreover, it helps explain a number of empirical observations that seem anomalous when contributions are driven by the consumption or the influence motives. We also study the impact of different forms of campaign finance laws on contribution behavior, probabilities of electoral outcomes, and welfare. Our results are consistent with more behaviorally motivated donors when contributions are driven by the parties' strategic solicitation of funds. We also indicate how the model and its results may have important implications for empirical work on campaign contributions.

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