More power for US politicians reduces credit in their states, paper finds

Increases in the political power of US politicians decrease the supply of consumer credit in the politicians’ home states, a paper published by the Federal Reserve Bank of Cleveland finds.

Politicizing Consumer Credit by Pat Akey, Rawley Heimer, and Stefan Lewellen uses a history of systematic shocks to the political standing of US Senators. The data set of consumer credit covers a random sample of 5% of the US population over 16 years.

When, for instance, a Senator is appointed to a powerful

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