The Partisanship of Financial Regulators

44 Pages Posted: 14 Nov 2019 Last revised: 3 May 2021

See all articles by Joseph Engelberg

Joseph Engelberg

University of California, San Diego (UCSD) - Rady School of Management

Matthew Henriksson

University of Mississippi - School of Business Administration

Asaf Manela

Washington University in St. Louis - John M. Olin Business School

Jared Williams

University of South Florida

Date Written: May 1, 2021

Abstract

We analyze the partisanship of Securities and Exchange Commissioners (SEC) and members of the Federal Reserve Board of Governors (Fed). Using the language-based approach of Gentzkow, Shapiro, and Taddy (Econometrica, 2019), we identify partisan phrases in Congress, such as “red tape” and “climate change,” and observe their usage among regulators. Throughout our sample period, 1930-2016, we find that the Fed has remained relatively non-partisan. However, partisanship among SEC Commissioners is rising and is at an all-time high in the most recent period. The partisanship trend among SEC Commissioners mirrors a more general trend in Congress and the American public.

Keywords: Partisanship, Financial Regulation, Textual Analysis

JEL Classification: G1, G2

Suggested Citation

Engelberg, Joseph and Henriksson, Matthew and Manela, Asaf and Williams, Jared, The Partisanship of Financial Regulators (May 1, 2021). Available at SSRN: https://ssrn.com/abstract=3481564 or http://dx.doi.org/10.2139/ssrn.3481564

Joseph Engelberg (Contact Author)

University of California, San Diego (UCSD) - Rady School of Management ( email )

9500 Gilman Drive
Rady School of Management
La Jolla, CA 92093
United States

Matthew Henriksson

University of Mississippi - School of Business Administration ( email )

PO Box 3986
Oxford, MS 38677
United States

Asaf Manela

Washington University in St. Louis - John M. Olin Business School ( email )

One Brookings Drive
Campus Box 1133
St. Louis, MO 63130-4899
United States
314-935-9178 (Phone)

HOME PAGE: http://apps.olin.wustl.edu/faculty/manela

Jared Williams

University of South Florida ( email )

Tampa, FL 33620
United States

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