Technology, Economic Booms, and Politics: Evidence from Fracking

64 Pages Posted: 4 Dec 2015 Last revised: 27 Aug 2018

See all articles by Viktar Fedaseyeu

Viktar Fedaseyeu

Bocconi University - Department of Finance; Bocconi University - IGIER - Innocenzo Gasparini Institute for Economic Research

Erik Gilje

University of Pennsylvania - The Wharton School

Philip E. Strahan

Boston College - Department of Finance; National Bureau of Economic Research (NBER)

Date Written: August 20, 2018

Abstract

Hydraulic fracturing generated unexpected shale oil and gas booms. After these booms, voter support for Republicans rises, leading Republicans to win seats from Democrats. Corporate donations to Republicans increase, but voter preferences on policy issues do not. Roll-call voting by House members becomes more conservative across issues extending beyond energy or the economy. But these changes only occur due to shifts in incumbency, as individual politicians do not alter behavior. This evidence is consistent with firms effecting political change by helping their allies win elections instead of affecting the behavior of incumbents, which in turn creates spillovers to other issues.

Keywords: Voter Preferences, Technology, Shale, Corporate Political Influence, Political Change, Political Economy

JEL Classification: D72, G38, P16

Suggested Citation

Fedaseyeu, Viktar and Gilje, Erik and Strahan, Philip E., Technology, Economic Booms, and Politics: Evidence from Fracking (August 20, 2018). Available at SSRN: https://ssrn.com/abstract=2698157 or http://dx.doi.org/10.2139/ssrn.2698157

Viktar Fedaseyeu

Bocconi University - Department of Finance ( email )

Via Roentgen 1
Milano, MI 20136
Italy
+390258365283 (Phone)
+390258365283 (Fax)

Bocconi University - IGIER - Innocenzo Gasparini Institute for Economic Research ( email )

Via Roentgen 1
Milan, 20136
Italy

Erik Gilje (Contact Author)

University of Pennsylvania - The Wharton School ( email )

3641 Locust Walk
Philadelphia, PA 19104-6365
United States

Philip E. Strahan

Boston College - Department of Finance ( email )

Carroll School of Management
140 Commonwealth Avenue
Chestnut Hill, MA 02467-3808
United States
617-552-6430 (Phone)
617-552-0431 (Fax)

HOME PAGE: http://www2.bc.edu/~strahan

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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