This is an important new study from Andrew C. W. Myers, Maria Silfa, Alexander Fouirnaies,
and Andrew B. Hall.
The paper also illustrates, though it doesn’t emphasize, the role that the rise of donations from individuals — including especially small donors — contributes to polarization. Donors have different motivations. Corporate PACs mainly donate to seek access to officeholders; as a result, they tend to give to incumbents and do so with much less emphasis on ideology. Individual donors, by contrast, are ideologically motivated. I have explored the rise of individual donors and the connection to polarization in my essay, Campaign Finance and Political Polarization.
Here’s the abstract from this new empirical paper:
Incumbents have long enjoyed a substantial fundraising advantage in American elections, but it remains unclear whether this advantage has persisted as elections have become more partisan and nationalized in recent years. Pairing a regression discontinuity design with a comprehensive dataset covering U.S. House, U.S. Senate, gubernatorial, statewide executive, and state legislative elections, we present the first systematic evidence on the evolution of the financial incumbency advantage. Overall, we find that the financial advantage enjoyed by incumbents at all levels of government has declined
25% to 50% over the last decade. This decline, however, is driven entirely by individual donors, and especially small-dollar donors; in contrast, the advantage among corporate PACs has remained stable—or even increased. Taken together, these shifts reveal a campaign finance landscape that is increasingly shaped by partisanship on one side and strategic investment on the other.
And here is part of the abstract from Campaign Finance and Polarization:
In an era I have called “hyperpolarized democracy in America,” delivering effective government has become extremely difficult. Much has been written about various institutional factors that contribute to the rise of polarization. But campaign finance has received minimal attention in these discussions. Most campaign finance discussion focuses on issues of political equality or the risks of political corruption. The failure to focus on the polarizing effects of our privately-financed elections is surprising, because one of the most robust findings in the empirical literature on campaign finance is that donors are much more ideologically extreme than other citizens. Nor has the emergence of small donors in the last several election cycles changed this pattern. Small donors are at least as ideological as large donors, perhaps more so…{This essay} then argues that, once we recognize the relationship between individual donors and polarization, there are implications for the appropriate direction of political reform.