Public funding of political parties when campaigns are informative
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Public funding of political parties when campaigns are informative. / Ortín, Ignacio Ortuño; Schultz, Christian.
Economic Policy Research Unit. Department of Economics, University of Copenhagen, 2012.Research output: Working paper › Research
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TY - UNPB
T1 - Public funding of political parties when campaigns are informative
AU - Ortín, Ignacio Ortuño
AU - Schultz, Christian
N1 - JEL classification: JEL: D72, D78, D82
PY - 2012
Y1 - 2012
N2 - The paper considers public funding of political parties when some voters are poorly informed about parties’ candidates and campaigns are informative. For symmetric equilibria, it is shown that more pub- lic funding leads parties to chose more moderate candidates, and that an increase in the funding’s dependence on vote shares induces fur- ther moderation and improves welfare. If parties are asymmetric, vote share dependent public funding bene…ts the large party and makes it moderate its candidate, while the smaller party reacts by choosing a more extremist candidate. On balance, however, if the parties are not too asymmetric, an increase in vote share dependent funding improves welfare and increases the likelihood that a moderate candidate wins the election
AB - The paper considers public funding of political parties when some voters are poorly informed about parties’ candidates and campaigns are informative. For symmetric equilibria, it is shown that more pub- lic funding leads parties to chose more moderate candidates, and that an increase in the funding’s dependence on vote shares induces fur- ther moderation and improves welfare. If parties are asymmetric, vote share dependent public funding bene…ts the large party and makes it moderate its candidate, while the smaller party reacts by choosing a more extremist candidate. On balance, however, if the parties are not too asymmetric, an increase in vote share dependent funding improves welfare and increases the likelihood that a moderate candidate wins the election
KW - Faculty of Social Sciences
KW - political economy
KW - Parties
KW - Public Funding
KW - Informative Advertising
KW - Campaign Finance
M3 - Working paper
BT - Public funding of political parties when campaigns are informative
PB - Economic Policy Research Unit. Department of Economics, University of Copenhagen
ER -
ID: 38557081