Loading...
Please wait, while we are loading the content...
Similar Documents
Financial Crisis, Creditor-Debtor Conflict, and Political Extremism
| Content Provider | Scilit |
|---|---|
| Author | Gyongyosi, Gyozo Verner, Emil |
| Copyright Year | 2018 |
| Description | Journal: SSRN Electronic Journal This paper studies the impact of debtor distress during a financial crisis on support for the populist far right. We use foreign currency borrowing of households in Hungary, combined with a large and unexpected exchange rate depreciation, as a natural experiment to generate a shock to household debt burdens. Exploiting zip code level variation in the prevalence of foreign currency household loans, we show that a 10 percent unexpected rise in debt-to-income increases the vote share of the far-right party Jobbik by 3.2 percentage points. Foreign currency debt exposure accounts for 20 percent of the overall rise in the far-right vote share. This result is robust to a variety of alternative explanations for increased far-right support and is corroborated by survey data on debtors and far-right supporters. We present evidence that conflict between creditors and debtors over the resolution of the crisis is an important mechanism in the electoral success of the far right. |
| Related Links | https://www.econstor.eu/bitstream/10419/181587/1/VfS-2018-pid-13656.pdf https://papers.ssrn.com/sol3/Delivery.cfm?abstractid=3289741 |
| ISSN | 10914358 |
| e-ISSN | 15565068 |
| DOI | 10.2139/ssrn.3289741 |
| Journal | SSRN Electronic Journal |
| Language | English |
| Publisher | Elsevier BV |
| Publisher Date | 2018-11-01 |
| Access Restriction | Open |
| Subject Keyword | Journal: SSRN Electronic Journal Political Science Far-right Parties Political Extremism Financial Crisis Household Debt Foreign Currency Debt Creditor-debtor Conflict |
| Content Type | Text |
| Resource Type | Article |
| Subject | Public Health, Environmental and Occupational Health Psychiatry and Mental Health |
