Objective. Campaign costs have grown rapidly in recent years. This analysis
considers the amount of money candidates allocated in running for the stat
e legislature. What factors associated with candidates, districts, and stat
es are responsible for variations in campaign costs! Of particular concern
is the impact of campaign finance regulations. Are laws aimed at restrictin
g contributions effective at reducing overall levels of campaign spending a
s is often assumed to be the case! Methods. This analysis examines spending
by 3,253 state legislative candidates running in twenty-seven states in th
e mid-1990s. Results. A number of factors are found to influence campaign s
pending although these effects often vary by type of candidate. In particul
ar, contribution limits and public funding reduce spending for incumbents w
hile public funding leads to higher levels of challenger spending. Conclusi
ons. Campaign finance laws affect spending levels, but candidate- and distr
ict-level factors also have a large impact. Several of these findings have
implications for understanding the role of money in elections and for antic
ipating the effects of possible reform measures.