Page 33 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE

Let’s reiterate our claim: the groups that solely exist to inform and

influence voters on a particular issue will spend more on short-term, non-durable
political good; in particular, (i) independent, unknown, one-shot groups will spend

relatively more on media and campaign expenses such as polling and direct

mailing; alternatively unions mainly contribute to parties, candidates, and
committees rather than spending on these non-durable goods to further cement

their long-term relationship with their agents, i.e., durable goods.
The sample average for media spending is 5 percent. As Table 4

presents, for independent groups the average media spending is 9 percent; for
unknown groups 27 percent; and for one-shot groups it is 13 percent. Clearly,

these three groups are spending much more than the sample average on non-

durable political goods. The two sample one-sided t-test values for the null
hypotheses that a specific group’s media spending average is not different than

the others’ are the following: For independent groups versus others 1.17;

unknown groups versus others 1.37; and one-shot versus others 1.33. Thus,
these differences are statistically significant at 10% level.

The sample average for campaign direct mailing is 2 percent. As Table
4 presents, for independent groups the average direct mailing spending is 6

percent; for unknown groups 14 percent; and for one-shot groups it is 5
percent. Clearly, these three groups are spending much more on this non-

durable political good. The two sample one-sided t-test values for the null

hypotheses that a specific group’s campaign direct mailing is not different
than the others’ are the following: For independent groups versus others

2.29; unknown groups versus others 1.69; and one-shot versus others 1.56.
Thus, these differences are statistically significant at 1%, 7%, and 7% level,

respectively.
On the other hand the sample average for contributions to political

parties, candidates, and committees is 45 percent. As Table 4 presents,

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