作者：Cotoc, Johnny; Johri, Alok; Sosa-Padilla, Cesar
作者单位：McMaster University; University of Notre Dame; National Bureau of Economic Research
摘要：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 (consistent with the data). We use variation in election efficiency to create model economies that elect the left more (left leaning) or less frequently (right leaning) in equilibrium. The left-lea...
