Public funding of elections increases candidate polarization by reducing the influence of moderate donors

2014 
A common refrain is that there is “too much money in politics”, with many arguing for the public funding of political campaigns. But what are the effects of this kind of public finding on electoral and legislative behavior? Using evidence from U.S. state legislative elections over the past four decades, Andrew B. Hall finds that public funding for campaigns actually increases political polarization by reducing the influence of interest groups, which tend to be more moderate than individuals in the way that they donate.
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