Nearly all research on campaign finance overlooks important intermediaries
between candidate spending and electoral outcomes. We consider the effects
of campaign spending on a variety of factors important to the health of any
democracy and political community: trust, efficacy, involvement, attention
, knowledge, and affect. Our analysis of the 1994 and 1996 U.S. House elect
ions shows that the effects of campaign spending lie more on the side of de
mocratic boon than democratic bane. Campaign spending increases knowledge o
f and affect toward the candidates, improves the public's ability to place
candidates on ideology and issue scales, and encourages certainty about tho
se placements. Rather than permit House members to mask their voting record
s, incumbent spending helps improve the accuracy of citizen perceptions of
the incumbent's ideology, Spending neither enhances nor erodes trust and ef
ficacy in politics or attention and interest in campaigns. We conclude that
campaign spending contributes to key aspects of democracy such as knowledg
e and affect, while nor damaging public trust or involvement.