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Economics

The Effects of Campaign Finance Laws on Electoral Competition

Quick fact

In the 2020 U.S. presidential election, total spending exceeded $14 billion—more than double the 2016 figure—and yet, despite decades of campaign finance regulations, the influence of money in elections has only grown, especially through independent groups that are not bound by direct contribution limits.

Why this is interesting

Imagine a basketball game where some players are allowed to have five personal referees, while others must rely on the official ones. That is what campaign finance laws do to elections: they change the rules, but not always the way we expect. How do these rules affect who wins and how close the game is?