Electoral Cycles in Savings Bank Lending
AbstractWe provide evidence that German savings banks – where local politicians are by law involved in their management – systematically adjust lending policies in response to local electoral cycles. The different timing of county elections across states and the existence of a control group of cooperative banks – that are very similar to savings banks but lack their political connectedness – allow for clean identification of causal effects of county elections on savings banks’ lending. These effects are economically meaningful and robust to various specifications. Moreover, politically induced lending increases in incumbent party entrenchment and in the contestedness of upcoming elections.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 4402.
Date of creation: 2013
Date of revision:
bank lending cycles; political business cycles; political connectedness; public banks; government ownership of firms;
Other versions of this item:
- Stowasser, Till & Englmaier, Florian, 2013. "Electoral cycles in savings bank lending," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79897, Verein für Socialpolitik / German Economic Association.
- Englmaier, Florian & Stowasser, Till, 2014. "Electoral cycles in savings bank lending," Discussion Papers in Economics 20845, University of Munich, Department of Economics.
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Christina Schneider, 2010. "Fighting with one hand tied behind the back: political budget cycles in the West German states," Public Choice, Springer, vol. 142(1), pages 125-150, January.
- Akhmed Akhmedov & Ekaterina Zhuravskaya, 2004.
"Opportunistic Political Cycles: Test in A Young Democracy Setting,"
The Quarterly Journal of Economics,
MIT Press, vol. 119(4), pages 1301-1338, November.
- Akhmed Akhmedov & Ekaterina Zhuravskaya, 2003. "Opportunistic Political Cycles: Test in a Young Democracy Setting," Working Papers w0024, Center for Economic and Financial Research (CEFIR).
- Akhmed Akhmedov & Ekaterina Zhuravskaya, 2004. "Opportunistic Political Cycles: Test in a Young Democracy Setting," Economics Working Papers 0047, Institute for Advanced Study, School of Social Science.
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