Economic growth

    Papers & Opinions

    Empirics | Financial markets | Theory

    Political Cycles and Stock Returns

    Paper

    Posted on 18 July 2021

    By Lubos Pastor

    We develop a model of political cycles driven by time-varying risk aversion. Agents choose to work in the public or private sector and to vote Democrat or Republican. In equilibrium,...
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    Electoral politics | Financial markets | Theory

    Inequality Aversion, Populism, and the Backlash Against Globalization

    Paper

    Posted on 12 July 2021

    By Lubos Pastor

    Motivated by the recent rise of populism in western democracies, we develop a tractable equilibrium model in which a populist backlash emerges endogenously in a strong economy. In the model,...
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    Banking | Electoral politics | Empirics

    Banks, Political Capital, and Growth

    Paper

    Posted on 30 June 2021

    By Thomas Lambert

    In this paper, we study the consequences of banks’ political connectedness for economic activity. We focus on the subset of banks that donate to candidates in US congressional elections, and...
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