Polarization

    Papers & Opinions

    Central banking | Electoral politics

    Partisan Bias in Inflation Expectations: Evidence from the 2024 US Election

    Paper

    Posted on 30 April 2025

    By Ana Carolina Garriga

    How does partisanship affect inflation expectations? While most research focuses on how inflation impacts political approval and voter behavior, we analyze the political roots of inflation expectations. We argue that...
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    Corporate finance | Empirics | Political institutions

    Going Extreme: The Impact of Political Polarization on Corporate Investment

    Paper

    Posted on 11 May 2023

    By Tiecheng Leng

    Using data on roll-call voting patterns of U.S. state legislators from 1993 to 2016, we find a negative relationship between firm investment and state legislative polarization, measured as the ideological...
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    Banking | Corporate finance | Electoral politics | Financial markets

    Does Political Partisanship Cross Borders? Evidence from International Capital Flows

    Paper

    Posted on 4 October 2021

    By Elisabeth Kempf

    Does partisan perception shape the flow of international capital? We provide evidence from two settings, syndicated corporate loans and equity mutual funds, to show that ideological alignment with foreign governments...
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    Corporate finance | Empirics

    Political Attitudes, Partisanship, and Merger Activity

    Paper

    Posted on 2 September 2021

    By Ran Duchin

    We demonstrate that similarity in employees’ political attitudes plays an important role in mergers and acquisitions. Using detailed data on employees’ campaign contributions to Democrats and Republicans, we find that...
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