Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/300009 
Year of Publication: 
2024
Series/Report no.: 
ZEW Discussion Papers No. 24-030
Publisher: 
ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung, Mannheim
Abstract: 
Many governments operate consumer debt relief programs, often timed to match the election cycle, but their political effects are not well understood. We ask if debt relief can influence elections in democracies. Our motivating exercise is the Biden administration's promise to relieve student debt. We utilize quasi-experimental variation generated by another very large debt relief program enacted in the Republic of Georgia that, similar to USA, affected every sixth voter. We estimate that the program helped the incumbent candidate win that election, and that its effects persisted. Overall, we show how economic power can translate into political power in democracies.
Subjects: 
Consumer debt relief
US student debt
distributive politics
vote buying
elections
JEL: 
G51
D72
Document Type: 
Working Paper

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