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Does Household Finance Affect the Political Process? Evidence from Voter Turnout During a Housing Crisis.
- Source :
- Review of Financial Studies; Feb2021, Vol. 34 Issue 2, p949-984, 36p
- Publication Year :
- 2021
-
Abstract
- I examine the effect of house price declines on voter participation using a novel person-level panel data set. Contrary to what the "angry voter hypothesis" predicts, I find that a 10% decline in local house prices decreases the participation rate of the average mortgaged homeowner by 1.6 percentage points. Consistent with a financial distress channel, house price declines have no effects on renters and particularly severe effects on highly leveraged households. My findings are consistent with the existence of a feedback loop between financial distress and inequality operating through voter participation. [ABSTRACT FROM AUTHOR]
- Subjects :
- VOTER turnout
HOUSEHOLDS & economics
FINANCIAL crises
HOME prices
EQUALITY
Subjects
Details
- Language :
- English
- ISSN :
- 08939454
- Volume :
- 34
- Issue :
- 2
- Database :
- Complementary Index
- Journal :
- Review of Financial Studies
- Publication Type :
- Academic Journal
- Accession number :
- 148344575
- Full Text :
- https://doi.org/10.1093/rfs/hhaa064