Journal of Financial Economics Vol. 186 2026
Political Voice and (Mortgage) Market Participation: Evidence from the dilution of Voting Rights Act
Abstract
Using US Supreme Court’s narrow-decision on Shelby v. Holder as a shock that diluted voting rights of Black Americans in covered counties, we document the relationship between political voice and economic decision-making. We show fewer Black Americans buy homes after their de-facto disenfranchisement, reflected through lower mortgage applications. Among those who apply for mortgages, there is a flight to Black lenders. Leveraging individual-level survey data, we show confidence in government and financial institutions plays a significant role in driving these effects. Our findings demonstrate that the effects of disenfranchisement extend beyond the ballot box to fundamental economic decisions like homeownership.
- DOI
- 10.1016/j.jfineco.2026.104387
- Volume
- 186
- Pages
- 104387
- Language
- en
- Sources
- crossref openalex