Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - On the distribution of public funding to political parties
AU - Troumpounis, Orestis
PY - 2012/9
Y1 - 2012/9
N2 - The distribution of direct public funding to political parties is based on two criteria: (1) performance at the election (funding per vote), or (2) representation in the parliament (funding per seat). Using a two-party group turnout model, we compare the effect of the two funding systems on parties’ mobilization effort and the equilibrium turnout. Allowing one party to have a larger support than the other, we uncover interesting differences regarding the equilibrium structure: while in the unique equilibrium of per seat funding systems both parties exert the same amount of effort, a per vote funding system results in an asymmetric equilibrium in which the advantaged party exerts higher effort than its opponent. We furthermore show that, at the same cost, a per vote funding system always yields higher turnout than a per seat funding system, sacrificing the representativity of the electoral outcome.
AB - The distribution of direct public funding to political parties is based on two criteria: (1) performance at the election (funding per vote), or (2) representation in the parliament (funding per seat). Using a two-party group turnout model, we compare the effect of the two funding systems on parties’ mobilization effort and the equilibrium turnout. Allowing one party to have a larger support than the other, we uncover interesting differences regarding the equilibrium structure: while in the unique equilibrium of per seat funding systems both parties exert the same amount of effort, a per vote funding system results in an asymmetric equilibrium in which the advantaged party exerts higher effort than its opponent. We furthermore show that, at the same cost, a per vote funding system always yields higher turnout than a per seat funding system, sacrificing the representativity of the electoral outcome.
KW - Public funding
KW - Turnout
KW - Mobilization effort
KW - Group-turnout model
KW - Campaign finance
U2 - 10.1016/j.econlet.2012.04.001
DO - 10.1016/j.econlet.2012.04.001
M3 - Journal article
VL - 116
SP - 367
EP - 370
JO - Economics Letters
JF - Economics Letters
SN - 0165-1765
IS - 3
ER -