JEL classification: D72, G38, K25, P16
Keywords: real estate, political economy, economic bills, politician
학회소식
[2022년 5차 CAFM2022]Politicians’ Asset Allocation and Economic Bill Proposals
작성자 : 관리자
조회수 : 321
게시일 :
2022-12-20
We study the impact of politicians’ asset allocation on their economic bill proposals. Using a novel database of comprehensive financial disclosures of Congress members in South Korea, we find that the Congress members with more real estate assets in their portfolios are less likely to propose economic bills tightening the real estate market. To address endogeneity concerns, we use an instrumental variable uniquely available in our empirical setting; an unexpected earthquake in a local city in South Korea. Controlling for other confounding factors, we argue that the result is mainly driven by politicians’ financial interests. Overall, our findings suggest that politicians’ personal financial positions have a material impact on their choice of economic bill proposals.
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