Do politicians affect firm outcomes? : evidence from connections to the German Federal Parliament / André Diegmann, Laura Pohlan, Andrea Weber ; editor: Halle Institute for Economic Research (IWH) - Member of the Leibniz Association
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Do politicians affect firm outcomes?
Discovery
1890277592
URN
urn:nbn:de:gbv:3:2-1063753
DOI
ISBN
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Publication history
Halle (Saale), Germany : Halle Institute for Economic Research (IWH) - Member of the Leibniz Association, May 2024
Content
1 Online-Ressource (III, 64 Seiten, 1,45 MB) : Diagramme
Edition
Language
eng
Comment
Literaturverzeichnis: Seite 35-38
Abstract
We study how connections to German federal parliamentarians affect firm dynamics by constructing a novel dataset to measure connections between politicians and the universe of firms. To identify the causal effect of access to political power, we exploit (i) new appointments to the company leadership team and (ii) discontinuities around the marginal seat of party election lists. Our results reveal that connections lead to reductions in firm exits, gradual increases in employment growth without improvements in productivity. The economic effects are mediated by better credit ratings while access to subsidies or procurement contracts are documented to be of lower importance.
Series
IWH-Diskussionspapiere ; 2024, no. 15 (May 2024) ppn:837399270