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Sovereign Spreads and the Political Leaning of Nations

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NBER2021-08-01 更新2025-01-04 收录
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Nations with a higher propensity to elect left governments tend to pay higher and more volatile sovereign spreads. We build a sovereign default model with elections between left and right policymakers. Reelection probabilities increase with government spending, with the left having a small advantage

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2021-08-01
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