Assessing State Resilience: Lynching and Its Ramifications on State Credit in the United States
研究了1883-1920年间美国各州私刑活动对州政府债券收益率的影响，发现私刑增加导致借贷成本上升，表明制度薄弱会损害信用。
ABSTRACT The importance of state capacity and institutional quality has received significant attention within the academic literature. This is especially true as it relates to the protection of property rights and, ultimately, the role it plays in economic development. This study adds to this literature by considering how lynching activity across US states impacts sovereign credit. Given that lynching tends to be associated with weak public‐sector institutions, limited‐access social orders, and the weak protection of individual and property rights, we posit that as lynchings increase so too will bond yields. The analysis covers the period 1883–1920 and find support that state borrowing costs rose as lynching activity increased. The results are robust to a number of specifications, demographic groups, and regions. Implications are discussed.