We assess the influence of moneyed interests on legislative decisions. Our theory predicts that the vote outcome distribution and donation flows in a legislature feature a discontinuity at the approval threshold of bills if special interest groups are involved in vote buying. Testing the...

In most OECD countries direct public funding to political parties is provided and its allocation is executed on the basis of two principles, i.e., (i) proportional to the votes (or alternatively the number of seats), and (ii) equal distribution. We consider the existence of an optimal policy and...

Based on contribution patterns to parties in Germany and elsewhere, we suggest that democracies should use a mixed system where private funding can play a larger role than public funding. In Germany the high level of public funding for parties can be reduced without expecting undesirable effects...

What determines party strategies in election campaigns? In this paper, I highlight a novel aspect to the party behavior literature pertaining to the connection between election programs and actual campaign statements issued by party elites in the media. I argue that party leaders might feel the...

This paper studies the effects on electoral competition of political parties relying on monetary donations and volunteer labor for their electioneering activities. It also examines whether a recorded decline in party activism increases special-interest influence on party policy platforms....