Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/314730 
Year of Publication: 
2025
Series/Report no.: 
CESifo Working Paper No. 11691
Publisher: 
CESifo GmbH, Munich
Abstract: 
We study how connections to German federal parliamentarians affect firm dynamics by constructing a novel dataset linking politicians and election candidates to the universe of firms. To identify the causal effect of access to political power, we exploit (i) new appointments to the company leadership team and (ii) discontinuities around the marginal seat of party election lists. Our results reveal that connections lead to reductions in firm exits, gradual increases in employment growth without improvements in productivity. Adding information on credit ratings, subsidies and procurement contracts allows us to distinguish between mechanisms driving the effects over the politician's career.
Subjects: 
politicians
firm performance
identification
political connections
JEL: 
O43
L25
D72
Document Type: 
Working Paper
Appears in Collections:

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.