From finance to fascism
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- dc.contributor.author Doerr, Sebastian
- dc.contributor.author Gissler, Stefan
- dc.contributor.author Peydró, José-Luis
- dc.contributor.author Voth, Hans-Joachim
- dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
- dc.date.accessioned 2024-11-14T10:09:30Z
- dc.date.available 2024-11-14T10:09:30Z
- dc.date.issued 2018-03-01
- dc.date.modified 2024-11-14T10:06:19Z
- dc.description.abstract Do financial crises radicalize voters? We study Germany's banking crisis of 1931, when two major banks collapsed and voting for radical parties soared. We collect new data on bank branches and firm-bank connections of over 5,500 firms and show that incomes plummeted in cities affected by the bank failures; connected firms curtailed their payrolls. We further establish that Nazi votes surged in locations exposed to failing Danatbank, led by a prominent Jewish manager and targeted by anti-Semitic Nazi propaganda. Our results suggest a synergy between cultural and economic factors: Danatbank's collapse boosted Nazi support especially in cities with deep-seated anti-Semitism; and the Nazis gained few additional votes in cities exposed to collapsing Dresdner Bank, which was not the target of Nazi hate speech. Danat-exposed and non-exposed cities were similar in their pre-crisis characteristics and exhibited no differential pre-trends; firms borrowing from Danat had lower leverage before the crisis than other firms. Unobservables are unlikely to account for the results.
- dc.format.mimetype application/pdf*
- dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=1651
- dc.identifier.citation Journal of Finance, 77(6), December 2022, 2993-3425. DOI: https://doi.org/10.1111/jofi.13166
- dc.identifier.uri http://hdl.handle.net/10230/44685
- dc.language.iso eng
- dc.relation.ispartofseries Economics and Business Working Papers Series; 1651
- dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
- dc.rights.accessRights info:eu-repo/semantics/openAccess
- dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
- dc.subject.keyword financial crises
- dc.subject.keyword banking
- dc.subject.keyword great depression
- dc.subject.keyword democracy
- dc.subject.keyword anti-semitism
- dc.subject.keyword Macroeconomics and International Economics
- dc.title From finance to fascism
- dc.title.alternative ‘Financial Crises and Political Radicalization: How Failing Banks Paved Hitler's Path to Power’
- dc.type info:eu-repo/semantics/workingPaper