Karsten Müller
Postdoctoral Research Associate at Princeton University

I am a Postdoctoral Research Associate at the Julis-Rabinowitz Center for Public Policy & Finance at Princeton University. I completed my PhD at Warwick Business School in 2018.

My main research interests are in empirical corporate finance and political economy.


"Electoral Cycles in Macroprudential Regulation"


Selected media coverage: ProMarket

Summary: There is a robust and sizeable electoral cycle in the use of macroprudential tools around 212 elections in 58 countries from 2000 to 2014, particularly for targeted sectoral tools  that most likely impact the median voter. In contrast to monetary policy, central bank independence does not appear to moderate the cycle in prudential regulation.

Selected media coverage: Oxford Business Law Blog

Summary: Quasi-random shocks to the caseload of US bankruptcy judges have quantitatively important effects on ex-ante credit spreads and contract maturities, which implies non-negligible costs of judicial inefficiency.

Summary: Right-wing anti-refugee sentiment on Facebook predicts violent crimes against refugees in Germany. Evidence from internet and Facebook outages support the view that part of this reflects a causal effect of social media on hate crimes.

Summary: Anti-Muslim hate crimes in the United States have increased disproportionally in counties with many Twitter users since Donald Trump's presidential campaign. This stands out in historical comparison: there were not more such crimes in areas with higher Twitter usage during previous presidencies since 1990. Trump's tweets on Islam-related topics are highly correlated with weekly variation in anti-Muslim hate crimes after, but not before his campaign start.

"Bank Branching Deregulation and the Syndicated Loan Market" (R&R, JFQA)
(with Jan Keil)

Summary: Allowing banks to build branching networks across state borders in the US led to a substitution of syndicated for direct bilateral loans, which suggests that geographical risk diversification is a major rationale for loan syndication.



Summary: I document a number of new stylized facts about the long-run development of credit markets based on a large, sectorally disaggregated database on credit for 120 countries for 1940 through 2014. I also provide some evidence on why household credit has risen dramatically both in advanced and emerging economies.

"The Eurodollar Shock"
(with Atif Mian and Amir Sufi)