Template-Type: ReDIF-Paper 1.0 Author-Name: Mauricio Soares Bugarin Author-Name-First: Mauricio Soares Author-Name-Last: Bugarin Author-Name: Adriana Portugal Author-Name-First: Adriana Author-Name-Last: Portugal Author-Name: Sergio Naruhiko Sakurai Author-Name-First: Sergio Naruhiko Author-Name-Last: Sakurai Title: Inequality and Cost of Electoral Campaigns in Latin America Abstract: This chapter presents a theoretical and an empirical analysis of the effect of inequality on the cost of electoral campaigns. An electoral competition model suggests that electoral campaigns costs increase with the level of inequality. An econometric analysis of Brazilian 2002 and 2004 elections at the state and municipal levels supports the results of the theoretic model. Moreover, the regressions suggest that the lower the age dispersion and the higher the education dispersion of voters, the more expensive the electoral campaigns. The empirical and theoretic results stress the importance of careful campaign financing regulation in highly-unequal Latin American countries. Length: 29 pages Creation-Date: 2008 Order-URL:https://repositorio.insper.edu.br/handle/11224/5853 File-URL: https://repositorio.insper.edu.br/handle/11224/5853 File-Format: text/html File-Function: Full text Number: 043 Handle: RePEc:aap:wpaper:043