Skip to content Skip to navigation
University of Warwick
  • Study
  • |
  • Research
  • |
  • Business
  • |
  • Alumni
  • |
  • News
  • |
  • About

University of Warwick
Publications service & WRAP

Highlight your research

  • WRAP
    • Home
    • Search WRAP
    • Browse by Warwick Author
    • Browse WRAP by Year
    • Browse WRAP by Subject
    • Browse WRAP by Department
    • Browse WRAP by Funder
    • Browse Theses by Department
  • Publications Service
    • Home
    • Search Publications Service
    • Browse by Warwick Author
    • Browse Publications service by Year
    • Browse Publications service by Subject
    • Browse Publications service by Department
    • Browse Publications service by Funder
  • Help & Advice
University of Warwick

The Library

  • Login
  • Admin

Debt bailouts and constitutions

Tools
- Tools
+ Tools

Kohlscheen, Emanuel (2008) Debt bailouts and constitutions. Working Paper. Coventry: University of Warwick, Department of Economics. Warwick economic research papers (No.862).

[img]
Preview
PDF
WRAP_Kohlscheen_twerp_862.pdf - Requires a PDF viewer.

Download (251Kb)
Official URL: http://www2.warwick.ac.uk/fac/soc/economics/resear...

Request Changes to record.

Abstract

A demand based theory of sub-national debt bailouts is presented. It is shown that revenue sharing (RS) arrangements alter the demand for bailouts among politicians with regional constituencies as a bailout usually implies a shift of taxation to the federal tier. Automatic RS may lead to the formation of pro-bailout coalitions formed by indebted states and states that are net recipients of the RS arrangement. Also, RS can act as a commitment device for compensating payments among state representatives, making a bailout politically rational. The model shows that the state debt bailouts approved by the Brazilian Senate prior to the enactment of the Fiscal Responsibility Act were fully consistent with politicians that maximize the proceeds accruing to their constituencies.

Item Type: Working or Discussion Paper (Working Paper)
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HJ Public Finance
Divisions: Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH): Debts, Public, Loans -- Government guaranty, Revenue sharing, Brazil -- Economic conditions -- 1985-, South America -- Economic conditions -- 1918-
Series Name: Warwick economic research papers
Publisher: University of Warwick, Department of Economics
Place of Publication: Coventry
Official Date: 2008
Dates:
DateEvent
2008Published
Number: No.862
Number of Pages: 35
Institution: University of Warwick
Status: Not Peer Reviewed
Access rights to Published version: Open Access (Creative Commons)
Funder: Economic and Social Research Council (Great Britain) (ESRC)
Version or Related Resource: Kohlscheen, E. (2008). Debt bailouts and constitutions. Economic Inquiry, 46(3), pp. 480-492. http://wrap.warwick.ac.uk/id/eprint/29306
Related URLs:
  • Related item in WRAP

Request changes or add full text files to a record

Repository staff actions (login required)

View Item View Item
twitter

Email us: wrap@warwick.ac.uk
Contact Details
About Us