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When local governments default or file for bankruptcy, it is often because public officials misunderstood the risks associated with innovative financial products. If unsophisticated municipal bond issuers were to widely adopt a high risk financial product, this could harm taxpayers and...
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"We analyze a model in which voters are uncertain about the policy preferences of candidates. Two forces affect the probability of electoral success: proximity to the median voter and campaign contributions. First, we show how campaign contributions affect elections. Then we show how the...
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This paper deals with the impact of electoral competition on politicians' outside earnings. In our framework …, politicians face a tradeoff between allocating their time to political effort or to an alternative use generating outside earnings … that politicians facing low competition have substantially higher outside earnings. -- Political competition ; outside …
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