tag:blogger.com,1999:blog-4900303239154048192.post4811674783903667352..comments2024-03-06T06:34:42.881-05:00Comments on EconoSpeak: Lobbyists and CrisesUnknownnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-4900303239154048192.post-31253290840696875802010-03-07T11:27:40.169-05:002010-03-07T11:27:40.169-05:00Interesting. Of course, if you think you have bou...Interesting. Of course, if you think you have bought the government, you don't have to worry about doing your job.Eleanorhttps://www.blogger.com/profile/07014586558046317266noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-48540656167537583742010-03-05T23:53:28.033-05:002010-03-05T23:53:28.033-05:00I suppose this is the IMF paper:
A Fistful Of Dol...I suppose this is the IMF paper:<br /><a href="http://www.imf.org/external/pubs/ft/wp/2009/wp09287.pdf" rel="nofollow"> A Fistful Of Dollars: Lobbying And The Financial Crisis</a> ( pdf)<br /><br />Abstract:<br /><i><br />Using detailed information on lobbying and mortgage lending activities, we find that lenders lobbying more on issues related to mortgage lending (i) had higher loan-to-income ratios, (ii) securitized more intensively, and (iii) had faster growing portfolios. Ex-post, delinquency rates are higher in areas where lobbyist’ lending grew faster and they experienced negative abnormal stock returns during key crisis events. The findings are robust to (i) falsification tests using lobbying on issues unrelated to mortgage lending, (ii) a difference-in-difference approach based on state-level laws, and (iii) instrumental variables strategies. These results show that lobbying lenders engage in riskier lending. </i><br /><br /><br />I haven't read it yet though.Max jrnoreply@blogger.com