Campaign Finance and Political Efficacy: Evidence From the States.

The decline of political efficacy and political trust, often linked to the rise of money in politics, is one of the primary arguments justifying restrictions on donations and spending in the U.S. electoral process. To date, no study has utilized the extensive variation in state campaign finance regulations to test the relative importance of campaign finance laws in affecting how citizens view their government. We find no substantively large positive effects of campaign finance laws, and in some cases we even find that laws decrease efficacy. These results suggest that claims by reformers that campaign finance laws will restore faith in government deserve more careful scrutiny. [ABSTRACT FROM AUTHOR]