Financial crises and political radicalization: How failing banks paved Hitler's path to power

Hans-Joachim Voth, Sebastian Doerr, Stefan Gissler and Peydró, José-Luis
Authors registered in the RePEc Author Service: Jose-Luis Peydro

No 12806, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Do financial crises radicalize voters? We study Germany's 1931 banking crisis, collecting new data on bank branches and firm-bank connections of over 5,500 firms. Exploiting cross-sectional variation in pre-crisis exposure to failing banks, we show that Nazi votes surged in locations more affected by the financial crisis. Radicalization in response to the shock was exacerbated in cities with a history of anti-Semitism. After the Nazis seized power, both pogroms and deportations were more frequent in places affected by the banking crisis. Our results suggest an important synergy between financial distress and cultural predispositions, with far-reaching consequences.

Keywords: Financial crisis; Political extremism; Populism; Anti-semitism; Culture; Great depression (search for similar items in EconPapers)
JEL-codes: E44 G01 G21 N20 P16 (search for similar items in EconPapers)
Date: 2018-03
New Economics Papers: this item is included in nep-his and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Related works:
Journal Article: Financial Crises and Political Radicalization: How Failing Banks Paved Hitler's Path to Power (2022)
Journal Article: Financial crises and political radicalization: How failing banks paved Hitler’s path to power (2022)
Working Paper: Financial crises and political radicalization: How failing banks paved Hitler's path to power (2021)
Working Paper: From finance to fascism (2020)
Working Paper: From finance to fascism: The real effect of Germany's 1931 banking crisis (2019)
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