| Srl | Item |
| 1 |
ID:
158683
|
|
|
|
|
| Summary/Abstract |
Recent events in international finance illustrate the close connection between the viability of a country's major private financial institutions and the sustainability of its sovereign debt. We explore the precise nature of this connection and the ways in which it shapes investors’ expectations of sovereign creditworthiness. We consider how investors use the overall level of information available about the private financial sector—and the potential risks it poses to government finances—when making decisions about investing in sovereign debt. We expect that governments providing more information about the private financial sector will have lower, and less volatile, borrowing costs. In order to test this argument, we create a new Financial Data Transparency (FDT) Index measuring governments’ willingness to release credible financial system data. Using the FDT and a sample of high-income OECD countries, we find that such transparency reduces sovereign borrowing costs. The effects are conditional on the level of public indebtedness. Transparent countries with low debt enjoy lower and less volatile borrowing costs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2 |
ID:
143328
|
|
|
|
|
| Summary/Abstract |
Ideally, national legislatures in democracies should be venues for peacefully resolving conflicts between opposing groups. However, they can become places of physical violence. Such violence can be an indication that countries’ legislative institutions are functioning far from the democratic ideal of being venues for peaceful conflict reconciliation. In some cases, such as Ukraine prior to the 2014 outbreak of armed conflict in the country’s east and south, violence can indicate and possibly fuel deeper political divisions. In this first global study of legislative violence, I show that brawls are more likely when legislators find it difficult to credibly commit to follow peaceful bargains. Credible commitment problems are more acute in countries with new democracies and disproportionate electoral outcomes – that is, when electoral votes for parties do not closely correspond to the legislative seats they are given. I find robust support for this argument by first examining a case study of legislative violence in the antebellum United States Senate. Pro- and anti-slavery senators became increasingly unable to maintain credible commitments in the lead-up to the 1856 caning of Senator Charles Sumner as the allocation of seats in the legislative body became more disproportional. Second, I find further support for my argument in a new global dataset of contemporary instances of violence in national legislatures. In addition, I find strong evidence that violence is more likely in legislatures with small minority governments. Despite reasonable expectations, civil wars are not associated with more legislative violence.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|