Page 28 - Azerbaijan State University of Economics

DEMAND FOR DURABLE AND NON-DURABLE POLITICAL GOODS

Ansolabehere, de Figueiredo, and Snyder also enumerate a large

number of studies that test for the effects that PAC contributions have on
Congressional votes. In general these studies conclude that PACs have only a

weak impact on legislative outcomes. “Overall, PAC contributions show

relative few effects on voting behavior.” (p. 114) However, since spending
limits are not imposed on advocacy groups engaging in non-federal political

activity, the potential impact of advocacy groups at the state level may be
different.

A separate issue, however, is how advocacy groups allocate the
resources they have raised for political activity in order to attain the election

outcomes they seek. In non-federal elections groups can not only advocate

for candidates but for specific issues, constitutional changes, referenda, tax
issues, and so forth. Thus, an issue oriented group like the National Rifle

Association is not limited to supporting or working against candidates but

can work for or against direct vote issues on the ballot. Similarly, political
parties not only seek the election of their own candidates but can offer

support for or against specific ballot issues. In other words, advocacy groups
can not only supply funds to candidates and their election committees, but

they can also engage in campaign activities themselves on behalf of issues or
candidates.

Observations during the 2008 election in the state of Colorado

formed the stylized facts that led to this inquiry. Colorado has fairly weak
restrictions governing access to the state ballot. Consequently all sorts of

different interests are able to get ballot initiatives under consideration
ranging from Electoral College reforms to political activity by vendors to the

state. It is not unheard of to have internally inconsistent measures brought
before the voters on the same ballot. During the 2008 election campaign we

observed that different kinds of message media could be associated with

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