This paper studies with disaggregated budget data how expenditures, revenues, and borrowing evolve in municipalities that receive bailouts. It asks whether higher-level governments enforce austerity measures after bailing out indebted municipalities. The sample consists of 421 municipalities in...

This article contains a brief review of the main causes of the current crisis and concerns strategies of market dogmatism and their impacts, which followed the end of post-war boom and the end of the so-called Bretton Woods System. Rising inequality and deregulation led to increasing investment...

This paper studies the incidence of bailouts with the possibility that bailouts may be required repeatedly before the crisis is resolved. I build a model in which two countries engage in a strategic interaction over repeated bailouts and austerity. The strategic interaction ends when the country...