As the proportional representation (PR) feature becomes more prominentin the Taiwanese congress electoral system, the purpose of this paper is toanalyze the equilibrium campaign expenditures incurred by competingpolitical parties under this design. In this paper we employ a spatial election model and assume that all participating parties aim at maximizingtheir expected political benefits net of campaign costs. We first solve theunique equilibrium solution of this model, and then carry out comparativestatic analysis. We also study the situations when one of the competingparties faces a binding limited budget to finance its campaign activities.We conclude this paper with policy implications.