Financial Asset Ownership and Political Partisanship: Liberty Bonds and Republican Electoral Success in the 1920s

B-Tier
Journal: Journal of Economic History
Year: 2020
Volume: 80
Issue: 3
Pages: 746-781

Authors (2)

Hilt, Eric (Wellesley College) Rahn, Wendy (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We analyze the effects of ownership of liberty bonds on election outcomes in the 1920s. We find that counties with higher liberty bond ownership rates turned against the Democratic Party in the presidential elections of 1920 and 1924. This was a reaction to the depreciation of the bonds prior to the 1920 election (when the Democrats held the presidency) and the appreciation of the bonds in the early 1920s (under a Republican president), as the Federal Reserve raised and then subsequently lowered interest rates. Our analysis suggests that the liberty bond campaigns had unintended political consequences.

Technical Details

RePEc Handle
repec:cup:jechis:v:80:y:2020:i:3:p:746-781_4
Journal Field
Economic History
Author Count
2
Added to Database
2026-02-02