Relieving Financial Distress Increases Voter Turnout: Evidence from the Mortgage Market

Haoyang Liu (), W. Ben McCartney, Rodney Ramcharan, Calvin Zhang and Xiaohan Zhang

No 2517, Working Papers from Federal Reserve Bank of Dallas

Abstract: Borrowers who refinanced mortgages between 2009 and 2012, a period marked by mortgage distress and dislocated housing markets, but also falling interest rates, were more likely to vote in the 2012 general election than similar borrowers who did not refinance. We exploit an eligibility cutoff in the Home Affordable Refinance Program (HARP) to identify a causal relationship. Consistent with the resource model of voting, the effect of refinancing on turnout is strongest among borrowers with lower incomes and larger debt service reductions. Our findings shed new light on an important channel linking economic conditions and political outcomes.

Keywords: household finance; mortgages; interest rates; political participation; voter turnout (search for similar items in EconPapers)
JEL-codes: D12 D14 D72 E43 H31 R20 (search for similar items in EconPapers)
Pages: 50
Date: 2025-05-12
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Persistent link: https://EconPapers.repec.org/RePEc:fip:feddwp:99960

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DOI: 10.24149/wp2517

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