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Elections
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Political parties
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Partis politiques
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Platforms
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Programmes
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BPB0707
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338.2 <493>
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651.2 Belgische maatschappij en identiteit
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Economisch beleid. Economische politiek. Geleide economie. Plan --
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BPB0707
---
338.2 <493>
---
651.2 Belgische maatschappij en identiteit
---
338.2 <493> Economisch beleid. Economische politiek. Geleide economie. Plan --
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We propose a formal model of small campaign contributions driven by an electoral motive, that is, by the possible influence of contributions on the outcome of an election. Electoral considerations produce strategic interactions among contributors, even when each donor takes as given the actions of other donors. These interactions induce patterns of individual contributions that are in line with empirical findings in the literature. For instance, equilibrium contributions increase when the support for the two candidates is more equal--a "closeness effect"--and relative contributions for the advantaged party are smaller than their underlying advantage--an "underdog effect." We then study the impact of different forms of campaign finance laws. We show that caps affect small donors even if they are not directly capped, and that it may be optimal to combine caps with a progressive tax on contributions. We also indicate why our results may have implications for empirical studies of campaign contributions.
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This paper studies the political determinants of inequality in government interventions under the majoritarian and proportional representation systems. Using a model of electoral competition with targetable government intervention and heterogeneous localities, we uncover a novel relative electoral sensitivity effect in majoritarian systems. This effect, which depends on the geographic distribution of voters, can incentivize parties to allocate resources more equally under majoritarian systems than proportional representation systems. This contrasts with the conventional wisdom that government interventions are more unequal in majoritarian systems.
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