We present a model of elections in which interest group donations allow candidates to shift policy positions. We show that if donations were prohibited, then a unique equilibrium regarding the position choices of candidates would exist. With unrestricted financing of political campaigns two...

A well-established line of academic inquiry argues that state capture emerges in contexts of weak governance institutions. However, Panama is an outlier case featuring high levels of state capture despite strong governance institutions. To better understand state capture in Panama, this paper...