In the Shadows of Sunlight: the Effects of Transparency in State Political Campaigns
Abstract: In this paper we investigate whether strict transparency laws influence the behavior of polit- ical donors at the state level. Channeling the late Justice Brandeis, we ask: to what degree does sunlight “disinfect” the political process? We utilize several data sources on state campaign spending and political competition to model the origin of transparency laws and to measure their effect. Specifically, we analyze the effect of strict disclosure laws on the proclivity of candidates and other organizations to run political attack ads. We also measure the effect of strict disclosure on the behavior of donors and campaigns. We find weak evidence that strict disclosure laws may inhibit the production of political attack ads. We also find evidence that stricter disclosure laws mitigate the effects of laws that make it easier to spend in elections.
