Working Paper Revision
Household Finance Shapes Political Participation: Evidence from Mortgage Refinancing
Abstract: We study mortgage refinancing during the Great Recession, a period marked by a dislocated housing market, major government programs, and large potential gains from refinancing. Using quasi-experimental variation from movements in mortgage rates and eligibility cutoffs in HARP, we show that borrowers who refinanced between 2009 and 2012 were more likely to vote in the 2012 general election than otherwise similar borrowers who did not refinance. The increase in turnout is concentrated among households that experienced larger payment reductions and among politically independent voters. Our findings show that policy-induced mortgage relief can extend beyond household balance sheets into the political sphere and highlight the deep connections between finance and politics.
JEL Classification: D12; D14; D72; E43; H31; R20;
https://doi.org/10.24149/wp2517r1
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Bibliographic Information
Provider: Federal Reserve Bank of Dallas
Part of Series: Working Papers
Publication Date: 2026-03-03
Number: 2517
Note: Previously circulated as "Relieving Financial Distress Increases Voter Turnout: Evidence from the Mortgage Market."
Related Works
- Working Paper Revision (2026-03-03) : You are here.
- Working Paper Original (2025-05-12) : Relieving Financial Distress Increases Voter Turnout: Evidence from the Mortgage Market