More Bang for the Buck: Campaign Spending and Fundraising Success

Can candidates spend their way into financial success? We propose that the 2007 presidential money primary offers unprecedented leverage to evaluate spending's influence since it allows for sharper controls of confounding factors. Our results demonstrate that greater candidate spending on fundraising-related efforts is associated with significant future financial benefits. We estimate that, prior to the primaries, increases in spending have an equal or larger payoff than increases in a candidate's viability and find different types of spending are beneficial for frontrunner and long-shot candidates. The results consistently indicate greater early spending works to advantage candidates, suggesting a lack of initial resources is a significant obstacle for candidates who seek to financially benefit from their campaign's performance.