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, and reduce deficits after they receive a bailout from the state government. The state government appears to be both able … and willing to enforce austerity after granting a bailout. …
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risk from the latter to the former — on the day a sovereign bailout is announced. Using daily financial market data for …
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This paper assesses the interactions of horizontal fiscal equalisation schemes with debt policy by sovereign regional governments. Local public goods are either financed by debt or taxation. A horizontal equalisation scheme elevates regional public revenue disparities under horizontal and...
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