Doerr, SebastianGissler, StefanPeydró, José-LuisVoth, Hans-Joachim2023-03-032023-03-032022Doerr S, Gissler S, Peydró JL, Voth HJ. Financial crises and political radicalization: how failing banks paved Hitler's path to power. Journal of Finance. December 2022 Dec;77(6):3339-72. DOI: 10.1111/jofi.131660022-1082http://hdl.handle.net/10230/56031Supplemental material files: supporting information: online appendix; replication fileDo financial crises radicalize voters? We study Germany's 1931 banking crisis, collecting new data on bank branches and firm-bank connections. Exploiting cross-sectional variation in precrisis exposure to the bank at the center of the crisis, we show that Nazi votes surged in locations more affected by its failure. Radicalization in response to the shock was exacerbated in cities with a history of anti-Semitism. After the Nazis seized power, both pogroms and deportations were more frequent in places affected by the banking crisis. Our results suggest an important synergy between financial distress and cultural predispositions, with far-reaching consequences.application/pdfengThis is the peer reviewed version of the following article: Doerr S, Gissler S, Peydró JL, Voth HJ. Financial crises and political radicalization: how failing banks paved Hitler's path to power. Journal of Finance. December 2022 Dec;77(6):3339-72. DOI: 10.1111/jofi.13166, which has been published in final form at http://dx.doi.org/10.1111/jofi.13166. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.info:eu-repo/semantics/articlehttp://dx.doi.org/10.1111/jofi.13166Financial crisisPolitical extremismPopulismAnti-semitismCultureGreat Depressioninfo:eu-repo/semantics/openAccess