| By: |
Aidt, Toke;
Asatryan, Zareh;
Badalyan, Lusine |
| Abstract: |
We study consumer debt relief as a tool of distributive politics and ask if
debt relief can influence elections. We utilize quasi-experimental variation
generated by a very large debt relief program enacted in the Republic of
Georgia by a private foundation that affected every sixth voter. We estimate
that the program helped the incumbent candidate linked to the foundation win
the 2018 Presidential election, and that its effects persisted into the next
election. We show how economic power can translate into political power in
polities with de jure competitive elections but with de facto weak
accountability. |
| Keywords: |
Consumer debt relief,distributive politics,vote buying,elections |
| JEL: |
D72 E51 O10 |
| Date: |
2022 |
| URL: |
http://d.repec.org/n?u=RePEc:zbw:zewdip:22049&r= |