Arbeitspapier
The political economy of finance and regulatory capture: Evidence from the US Congress
The 2007-08 Global Financial Crisis is a watershed phenomenon that reshaped global capitalism. Stemming from the argument that the Crisis was caused by deregulation, this article assesses to what extent the financial industry influenced the legislative process underlying these reforms. The hypothesis is that, during the deregulation process, the financial industry captured lawmakers' voting behaviour. Drawing on a logistic regression model, this study estimates to what extent 106th -109th Congress roll call votes on financial liberalisation were biased by industry-led campaign contributions and lobbying activities. The main finding shows that members of the US Congress recipient of funding from the financial sector were more prone to support deregulation. Providing systematic empirical evidence of capture, the results support the literature labelling the Crisis as the result of industry-induced deregulation.
- Sprache
-
Englisch
- Erschienen in
-
Series: ILE Working Paper Series ; No. 72
- Klassifikation
-
Wirtschaft
Financial Crises
General Financial Markets: Government Policy and Regulation
Business and Securities Law
Regulated Industries and Administrative Law
Capitalist Systems: Political Economy
- Thema
-
political economy
financial crisis
deregulation
capture
campaign finance
lobbying
US Congress
voting behaviour
logistic regression
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Silano, Filippo
- Ereignis
-
Veröffentlichung
- (wer)
-
University of Hamburg, Institute of Law and Economics (ILE)
- (wo)
-
Hamburg
- (wann)
-
2023
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Silano, Filippo
- University of Hamburg, Institute of Law and Economics (ILE)
Entstanden
- 2023
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