This paper presents a model which captures the three main arguments for and against campaign spending limits. Campaign spending limits are purported to restrict the incumbent's ability to exploit his fundraising advantage. In contrast to conventional wisdom, a ceiling increases the incumbent's...

Political campaign spending ceilings are purported to limit the incumbent's ability to exploit his fundraising advantage. If the challenger does not have superior campaign effectiveness, in contrast to conventional wisdom, we show that the incumbent always benefits from a limit as long as he has...