Yotam Margalit, Moses Shayo, 31 January 2021

The impact of markets on participants' values and political preferences has long been a contested issue.  This column uses a large field experiment to evaluate the effects of engagement in financial markets. Participants from a national sample in England were randomly assigned substantial sums they could invest in stocks or non-financial assets over a six-week period. Results show that investment in stocks led to a more right-leaning outlook on society and economics, including issues like personal responsibility, merit, and the role of luck in economic success. It also increased support for market-friendly policies and less regulation. 


CEPR Policy Research