simple capital market model with credit constraints. Empirically, we find increases in political constraints precede economic … growth, which is in line with the idea that economic development is driven by political development. Furthermore, only when … findings in the sense that limited government is the path towards economic development, being a pre-condition for poor …

level of debt is reached: (i)investment falls precipitously as it should when it becomes optimal to default, (ii) economic …-empt default and exact punitive interest rates. We find a systematic response of investment, particularly when property rights are … with concessional rates. Thus, while debt relief is likely to improve economic policy (and especially investment) in …

The most fundamental form of systemic risk in modern financial networks is contagion. In this article we describe a … shares in each others' assets. Using these simplifications we derive an analytically tractable indicator for systemic risk … volatility of the assets and decreasing the level of equity both raises systemic risk. Furthermore, interconnectedness in the …

The most fundamental form of systemic risk in modern financial networks is contagion. In this article we describe a … shares in each others' assets. Using these simplifications we derive an analytically tractable indicator for systemic risk … volatility of the assets and decreasing the level of equity both raises systemic risk. Furthermore, interconnectedness in the …