This study examines the impact of state legislative term limits on the candidacy decisions of challengers in U.S. House elections. Using data from 1996 to 2006, the authors show that the impact of term limits is mitigated by local political factors, such as an incumbent’s election margin. The larger the incumbent’s previous electoral margin, the lower the likelihood of facing a quality challenger. The authors also identify an unanticipated consequence of term limits: In incumbent races, term limits can generate a substitution effect; as termed out state legislators enter elections, other quality challengers from the same party stay out of the race, as they are unwilling to face a primary in addition to a general election fight. As a result, the increased number of termed out state legislators who seek Congressional office are offset by the reduced number of other quality challengers from nonlegislative offices, resulting in minimally more competitive Congressional elections.
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