A recent article in the Times — bless some reporter’s or editor’s contrarian heart – asks the question: so, what effect does corporate money actually have on democracy?” The answer seems to be: none at all. One of the economists cited is Peter’s Missouri colleague, and my former student, Jeff Milyo: "There is just no good evidence that campaign finance laws have any effect on actual corruption."The above excerpt is from "Apocalypse Averted" by Dick Langlois on Organization and Markets.
From the New York Times article mentioned in the above quote:
Justice Anthony M. Kennedy noted in his opinion that no evidence was marshaled in 100,000 pages of legal briefs to show that unrestricted campaign money ever bought a lawmaker’s vote. And even after Congress further tightened the rules with the landmark McCain-Feingold law in 2002, banning hundreds of millions of dollars in unlimited contributions to the political parties, public trust in government fell to new lows, according to polls.
And what about the corporations that contributed so much of that money? A review of the biggest corporate donors found that their stock prices were unaffected after they stopped giving to the parties. The results suggest that those companies did not lose their influence and may have been giving "because they were shaken down by politicians," said Nathaniel Persily, a professor at Columbia Law School who has studied the law’s impact.
"There is no evidence that stricter campaign finance rules reduce corruption or raise positive assessments of government," said Kenneth Mayer, a professor of political science at the University of Wisconsin-Madison. "It seems like such an obvious relationship but it has proven impossible to prove."