Determinants of Aggregate Campaign Fundraising in State Legislative Elections.

Most research on variation in campaign finance focuses on why some candidates raise and spend more than others. There are fewer studies attempting to explain variation in aggregate fundraising across states. This paper takes up this question by exploring differences in per capita campaign fundraising across state legislatures: why does aggregate fundraising by legislative candidates vary across states even when controlling for population? Using data from 2003-2010 for all state legislative chambers, I find that institutional design features, rather than political and economic forces, are the primary predictors of variation in campaign fundraising. Smaller districts, more professional legislatures, stronger legislatures vis-à-vis governors, and weak campaign finance regulations all increase fundraising. Contrary to expectations, the level of partisan competition, the cost of living, the size of the state budget, and the wealth of a state do not have a major impact on fundraising levels. These findings suggest that existing fundraising levels are not inevitable and can be manipulated by institutional reforms. [ABSTRACT FROM AUTHOR]