Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments February 22, 2022 erstellt
Beschreibung:
We study the impact of politicians' asset allocation on their economic bill proposals. Using a novel database of comprehensive financial disclosures of Congress members in South Korea, we find that the Congress members with more real estate assets in their portfolios are less likely to propose economic bills tightening the real estate market. To address endogeneity concerns, we use instrumental variables uniquely available in our empirical setting: earthquake and military tensions between South and North Korea. Controlling for other confounding factors, we argue that the result is mainly driven by politicians' personal interests. Our findings suggest that politicians' financial positions have a material impact on their choice of economic bill proposals