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Financial Crises and Political Radicalization: How Failing Banks Paved Hitler's Path to Power

Sebastian Doerr, Stefan Gissler, José-Luis Peydró, Hans-Joachim Voth

Journal of Finance 77(6), pp. 3339-3372 (2022)

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Abstract

Do financial crises radicalize voters? We study Germany's 1931 banking crisis, collecting new data on bank branches and firm-bank connections. Exploiting cross-sectional variation in pre-crisis exposure to the bank at the center of the crisis, we show that Nazi votes surged in locations more affected by its failure.

Keywords
financial crises, banking, political radicalization, Weimar Germany, Nazi Party
DOI
10.1111/jofi.13166
Canonical
https://www.jvoth.com/papers/financial-crises-political-radicalization.html

Sebastian Doerr, Stefan Gissler, José-Luis Peydró, Hans-Joachim Voth (2022). “Financial Crises and Political Radicalization: How Failing Banks Paved Hitler's Path to Power.” Journal of Finance.