Law Commons^™

Financing Direct Democracy: Revisiting The Research On Campaign Spending And Citizen Initiatives, John M. De Figueiredo, Chang Ho Ji, Thad Kousser

Faculty Scholarship

The conventional view in the direct democracy literature is that spending against a measure is more effective than spending in favor of a measure, but the empirical results underlying this conclusion have been questioned by recent research. We argue that the conventional finding is driven by the endogenous nature of campaign spending: initiative proponents spend more when their ballot measure is likely to fail. We address this endogeneity by using an instrumental variables approach to analyze a comprehensive dataset of ballot propositions in California from 1976 to 2004. We find that both support and opposition spending on citizen initiatives have …