We formalize Zingales’ (2017) argument about the link between corporate economic characteristics and political influence in a setup that exhibits an inverse relationship between citizens’...

We characterize conditions under which the majority of voters supports a bailout despite incurring bailout expenditures. This yields inefficiently high investments when economic prospects are...

A collective and an individual investment in financial literacy, plus intrinsic skills, contribute to each household’s financial literacy. We show that low- and high-skilled households...

In a general equilibrium framework, we study the cost incurred by banks to ”buy” influence on capital regulation via campaign contributions. Our central result is...