. Politicians can overcome their credibility deficit in two ways. First, they can build reputations. This requires that they fulfill … commitments to their clients. Endogenizing credibility in this way, the authors find that targeted transfers and corruption are …-electoral promises. They also argue that in the absence of political credibility, political reliance on patrons enhances welfare in the …

rates, a dollarized banking system, and interactions between default risk on government liabilities, credibility, and … results highlight the importance of accounting for the link between default risk and credibility in understanding the real and …