Papers & Opinions

Corporate finance | Electoral politics | Theory

Credit Rationing, Electoral Politics, and Incentives

Paper

Posted on 22 July 2025

By Stylianos Papageorgiou

This paper develops a unified framework linking credit rationing, electoral politics, and credit terms. Vote-share-maximizing politicians moderate policy in response to credit market frictions, generating an endogenous asymmetry that limits...
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Electoral politics | Political institutions | Theory

Leaping into the Dark: A Model of Policy Gambles with Self-Fulfilling Features

Paper

Posted on 22 November 2021

By Kartik Anand

We examine why rational voters support risky “policy gambles”, even when detrimental to welfare, over maintaining a safe status quo. We present a model of electoral competition with two groups...
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Special interest politics

Self-funding of Political Campaigns

Paper

Posted on 13 September 2021

By Philip Valta

Candidate self-funding, in particular self-loans, is a significant source of funding of political campaigns.  Self-funding clusters among newcomers, Senate campaigns and Republican campaigns.  Self-funded campaigns raise less money from individuals...
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Corporate finance | Political institutions

Changes in the Electorate and Firm Values: Evidence from the Introduction of Female Suffrage in Switzerland

Paper

Posted on 2 August 2021

By Jörg Stahl

This paper analyzes the effect of the composition of the electorate on corporate prospects. Electorates constantly change, and support-maximizing policymakers adjust their legislative behavior to accommodate shifts in voter preferences....
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Banking | Electoral politics | Theory

The Political Economy of Prudential Regulation

Paper

Posted on 21 May 2021

By Magdalena Rola-Janicka

This paper introduces a voting model into a setting with negative borrowing externalities to study voter preferences for prudential regulation. Voters internalize the general equilibrium impact of prudential policy on...
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