Sovereign Defaults and Political Regime Transitions

Antonis Adam and Konstas Karanatsis

MPRA Paper from University Library of Munich, Germany

Abstract: The view put forth in the present paper is that economic fluctuations emerge to change the political landscape. In this context it is hypothesized that state defaults are associated with autocratic polity changes. To support this view we use a dataset of all state defaults from 1800 to 2004 and examine the empirical validity of the hypothesis that a state default leads to a decline in the level of democracy. Then we examine 3 case studies of state defaults that are consistent with our hypothesis: Spain in 1852, Greece in 1932 and Ecuador in 2000. The econometric results and the historical analysis of the three case studies are consistent with our main hypothesis.

Keywords: State Default; Autocracy; Political Transitions (search for similar items in EconPapers)
JEL-codes: F34 (search for similar items in EconPapers)
Date: 2016-01-11
New Economics Papers: this item is included in nep-his
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/69062/1/MPRA_paper_69062.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:69062

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().