TY  - JOUR
AU  - Ansolabehere,Stephen
AU  - Figueiredo,John M. de
AU  - Snyder,James M.
TI  - Why Is There So Little Money in Politics?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 9409
PY  - 2003
Y2  - January 2003
UR  - http://www.nber.org/papers/w9409
L1  - http://www.nber.org/papers/w9409.pdf
N1  - Author contact info:
Stephen Ansolabehere
MIT
E-Mail: sda@mit.edu

John M. de Figueiredo
The Law School
Duke University
210 Science Drive
Durham, NC 27708
Tel: 919-613-8513
E-Mail: jdefig@law.duke.edu

James M. Snyder, Jr.
E-Mail: millett@mit.edu
AB  - In this paper, we argue that campaign contributions are not a form of policy-buying, but are rather a form of political participation and consumption. We summarize the data on campaign spending, and show through our descriptive statistics and our econometric analysis that individuals, not special interests, are the main source of campaign contributions. Moreover, we demonstrate that campaign giving is a normal good, dependent upon income, and campaign contributions as a percent of GDP have not risen appreciably in over 100 years:  if anything, they have probably fallen. We then show that only one in four studies from the previous literature support the popular notion that contributions buy legislators' votes. Finally, we illustrate that when one controls for unobserved constituent and legislator effects, there is little relationship between money and legislator votes. Thus, the question is not why there is so little money politics, but rather why organized interests give at all. We conclude by offering potential answers to this question.
ER  -