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- Title
Buying the Vote? The Economics of Electoral Politics and Small-Business Loans.
- Authors
Duchin, Ran; Hackney, John
- Abstract
We study the relation between electoral politics and government small-business lending, employment, and business formation. We construct novel measures of electoral importance capturing swing and base voters using data from Facebook ad spending, independent political expenditures, the Cook Political Report, and campaign contributions. We find that businesses in electorally important states, districts, and sectors receive more loans following the onset of the COVID-19 crisis, controlling for funding demand and both health and economic conditions. Estimates from survey and observational data show that electoral politics and the allocation of government funds affect employment, small-business activity, and business applications.
- Subjects
POLITICAL campaigns; SMALL business loans; EMPLOYMENT; GOVERNMENT lending; SWING voters; FACEBOOK (Web resource); CAMPAIGN funds; COVID-19 pandemic
- Publication
Journal of Financial & Quantitative Analysis, 2021, Vol 56, p2439
- ISSN
0022-1090
- Publication type
Article
- DOI
10.1017/S002210902100048X