Campaign Spending and Ballot Measures

Scholarly work on the role of money in ballot measure campaigns is primarily empirical. Ballot measures are either initiatives, which are drafted by citizens, or referendums, which are written by government officials. There is a perception that interest groups control the initiative process (Broder, 2000). This chapter discusses some theoretical considerations addressing how interest groups can influence ballot measure elections through their campaign spending. Some types of campaign spending on ballot measure elections may increase welfare, while other types of spending may not. I will then describe whether the evidence is consistent with either of these theoretical models.