News Release

Campaign spending affects electoral outcomes

Study shows how higher spending leads to greater chance of winning the election

Peer-Reviewed Publication

Wiley

Burnaby, B.C. – March 18, 2009 – In Canada, campaign spending limits for candidates during a federal election are stipulated by the Canada Elections Act. A study recently published in the Canadian Journal of Economics uses these spending limits to evaluate the impact of candidate spending on voting outcomes. Results show that higher spending by candidates is found to lead to better chance of the candidate winning the election, and that spending limits are good for democracy.

Kevin Milligan and Marie Rekkas draw on data from the Canadian elections of 1997 and 2000, using Canadian campaign spending limits to study how candidate spending affects voting outcomes such as vote share, voter turnout, and the margin of victory.

Campaign spending limits were found to be binding mostly for incumbent candidates. Higher spending was found to lead to greater vote share.

Also, higher spending limits lead to less close races, less voter turnout, and fewer candidates running.

"Our results may suggest that unobservable lower-quality incumbents spend more to compensate for their shortcomings," the authors note. "If we consider the welfare of voters rather than candidates, our findings suggest that spending limits can have an impact on voters' welfare – if broader outcomes such as electoral participation through voter turnout and more candidates running are held to be important by citizens."

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This study is published in the Canadian Journal of Economics. Media wishing to receive a PDF of this article may contact journalnews@bos.blackwellpublishing.net.

Marie Rekkas is affiliated with Simon Fraser University and can be reached for questions at mrekkas@sfu.ca.

The Canadian Journal of Economics (CJE)/Revue canadienne d'économique is the journal of the Canadian Economics Association (CEA), and is the primary academic economics journal in Canada. While the CJE is the premier outlet for high-quality papers concerning the Canadian economy and policy issues, the editors seek to maintain and enhance the position of the CJE as a major, internationally recognized journal by publishing papers on all economics topics -- theoretical or empirical -- and international in scope.

Wiley-Blackwell was formed in February 2007 as a result of the acquisition of Blackwell Publishing Ltd. by John Wiley & Sons, Inc., and its merger with Wiley's Scientific, Technical, and Medical business. Together, the companies have created a global publishing business with deep strength in every major academic and professional field. Wiley-Blackwell publishes approximately 1,400 scholarly peer-reviewed journals and an extensive collection of books with global appeal. For more information on Wiley-Blackwell, please visit www.wiley.com or http://interscience.wiley.com.


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