Polarization, Uncertainty, and Firm Investments: Evidence from the 2022 Brazilian Presidential Elections
investment, uncertainty, real options, panel data
The research investigates the impact of political uncertainty caused by the post-electoral protests of 2022 in Brazil on the demand for credit for fixed capital investments among Brazilian firms. Utilizing data from the Central Bank of Brazil and a protest intensity metric derived from roadblock violation records provided by the Federal Highway Police (PRF), the research examines how firms of different sizes responded to this period of instability.