Download This PaperSetting the Wolf to Guard the Sheep: The Influence of Politicians' Asset Holdings on Economic Bill Proposals
67 Pages Posted: 4 Mar 2022 Last revised: 9 Sep 2025
Date Written: February 22, 2022
Abstract
We examine how politicians' real estate holdings shape their economic bill proposals. Using a novel database of mandatory financial disclosures for all legislators in South Korea, we find that legislators with greater real estate holdings are less likely to propose economic bills aimed at tightening the real estate market during the run-up of housing prices. We address endogeneity concerns by employing an exogenous local earthquake shock as an instrumental variable for the local real estate market. Our results indicate that politicians' personal financial interests significantly influence the content and focus of economic bill proposals.
Keywords: real estate, political economy, economic bills, politician
JEL Classification: D72, G38, K25, P16
Suggested Citation: Suggested Citation
Choi, Hyun-Soo and Kim, Hugh Hoikwang and Kim, Paul Youngwook and Kim, Yun-Soo, Setting the Wolf to Guard the Sheep: The Influence of Politicians' Asset Holdings on Economic Bill Proposals (February 22, 2022). Available at SSRN: https://ssrn.com/abstract=4040810 or http://dx.doi.org/10.2139/ssrn.4040810
Hyun-Soo Choi
College of Business, Korea Advanced Institute of Science and Technology (KAIST) ( email )
85 Hoegiro Dongdaemun-Gu
Seoul 02455
Korea, Republic of (South Korea)
Paul Youngwook Kim
College of Business, Korea Advanced Institute of Science and Technology (KAIST) ( email )
85 Hoegiro Dongdaemun-Gu
Seoul 02455
Yun-Soo Kim
College of Business, Korea Advanced Institute of Science and Technology (KAIST) ( email )
85 Hoegiro Dongdaemun-Gu
Seoul 02455
Korea, Republic of (South Korea)