For over a century, scholars have debated whether U.S. campaign finance regulations significantly influence policy outcomes.
In the wake of Citizens United's landmark decision that allowed independent corporate expenditures in elections, this study examines how state-level policies responded to increased corporate political spending.
Research Design:
- Methodology: Generalized Synthetic Control Method (GSCM) applied post-Citizens United.
- Treatment Groups: States previously banning independent corporate election spending.
- Control Groups: States maintaining the pre-existing ban.
Key Findings
Following Citizens United, states that banned independent corporate spending shifted policies on issues broadly affecting corporations' welfare towards more 'corporate-friendly' positions.
This influence appears limited to policy areas directly impacted by such expenditures; no significant changes were observed for policies with minimal or no effect on corporate interests.
Implications
Contrary to prior studies focusing solely on election spending, this research demonstrates that even narrow legal changes related to campaign finance can have meaningful downstream effects on state government policymaking.
