This paper examines how political institutions mediate bond market reactions to severe economic crisis, based on U.S. states' experience of the 2008 credit market seizure. Following severe fiscal shocks, political institutions assume greater importance in assessing risk characteristics of state...

Many researchers have assumed that social media will reduce inequalities between elite politicians and those outside the political mainstream and that it will thus benefit democracy, as it circumvents the traditional media that focus too much on a few elite politicians. I test this assumption by...