Do Democracy Vouchers help democracy?

Abstract

Seattle's Democracy Vouchers program provides a unique form of public financing for political campaigns in which voters decide how to allocate public funding across candidates. This paper is the first to study the effects of public financing for political campaigns on political participation. I estimate that the Democracy Vouchers program increases voter turnout by 4.9 percentage points, suggesting that public financing programs can increase political participation. I also find that campaigns become more reliant on small contributions. For city council candidates, dollars from small contributions under $100 increase by 156% while dollars from large contributions over $250 decrease by 93%.