vix.ing · top · new · best · stats · spec

Political Accountability During Crises: Evidence From 40 Years of Financial Policies

2026/07/27 by Orkun Saka, Yuemei Ji, Clement Minaudier

paper · doi:10.1111/iere.70091

Abstract

ABSTRACT We show that politicians facing a binding term limit are more likely to engage in financial deliberalization than those facing reelection, but only in the wake of a financial crisis. In particular, they implement policies that tend to favor incumbent financial institutions over the general population, such as increasing barriers to entry in the banking sector. We propose a conceptual framework and several mechanisms to rationalize this behavior and show that revolving doors between the government and the financial sector play a key role in encouraging bank‐friendly policies after crises.

Related