Self-funding of Political Campaigns

Ovtchinnikov, Alexei V.; Valta, Philip (2023). Self-funding of Political Campaigns. Management Science, 69(4), pp. 2425-2448. INFORMS 10.1287/mnsc.2022.4404

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Candidate self-funding, in particular self-loans, is a significant source of funding of political campaigns. Self-funding clusters among non-incumbent campaigns, Republican campaigns and more expensive campaigns. Self-funded campaigns raise less money from individuals and special interests and also spend less. Self-funders are wealthier on average and run in more competitive elections. The analysis of self-funders’ legislative decisions shows that self-funders’ votes, especially those of Republicans, are significantly more sensitive to contributions from special interests that are affected by the votes. The results highlight the importance of considering politicians’ self-funding choices in analyzing voting behavior and the value of political activism.

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