Campaign contributions as a commitment device
Campaign contributions as a commitment device
We explore the idea that the influence of interest groups in elections may have positive economic effects. Since the investment decisions of firms determine economic growth and employment, voters have a common interest in making their governments commit to policies that encourage private investments. However, governments may renege on promises for economic stability and choose excessively leftist policies. Campaign contributions by firms tend to restrain the scope for such opportunism and provide a commitment device. This is achieved if firms, after the policy is chosen, contribute to the governing party or to its rivals.
campaign contributions, probabilistic voting, policy commitment
301-315
Maniadis, Zacharias
70ffa309-94c9-487c-982f-778294ea2a13
June 2009
Maniadis, Zacharias
70ffa309-94c9-487c-982f-778294ea2a13
Abstract
We explore the idea that the influence of interest groups in elections may have positive economic effects. Since the investment decisions of firms determine economic growth and employment, voters have a common interest in making their governments commit to policies that encourage private investments. However, governments may renege on promises for economic stability and choose excessively leftist policies. Campaign contributions by firms tend to restrain the scope for such opportunism and provide a commitment device. This is achieved if firms, after the policy is chosen, contribute to the governing party or to its rivals.
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e-pub ahead of print date: 16 January 2009
Published date: June 2009
Keywords:
campaign contributions, probabilistic voting, policy commitment
Organisations:
Economics
Identifiers
Local EPrints ID: 341896
URI: http://eprints.soton.ac.uk/id/eprint/341896
ISSN: 0048-5829
PURE UUID: dc0d2f59-159f-4c6f-bd56-6cb57d8f7a63
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Date deposited: 06 Aug 2012 16:15
Last modified: 15 Mar 2024 03:43
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