Money, Campaign Finance and Elections A Case Study of the US Federal Elections

Abstract

The influence of corporations and interest groups on US elections is a much-debated issue. The issue became more pronounced after the 2010 Citizens United V. Federal Election Commission US Supreme Court decision. In this study, we analyze changing patterns of US election contributions and federal election outcomes. For our study, we used data from FEC database for federal elections held between years 2002 and 2014. We use Difference-in-Difference and instrumental variables (IV) to measure the net effect of 2010 court decision on election contributions and their subsequent influence on election outcomes.