Metadata record for Replication data for: Resolving Debt Overhang: Political Constraints in the Aftermath of Financial Crises
114294
Inter-university Consortium for Political and Social Research
ICPSR metadata records are licensed under a Creative Commons Attribution-Noncommercial 3.0 United States License.
V1
Replication data for: Resolving Debt Overhang: Political Constraints in the Aftermath of Financial Crises
114294
http://doi.org/10.3886/E114294V1
Atif Mian
Amir Sufi
Francesco Trebbi
Please see full citation.
This work is licensed under an Other license created by the data depositor. Please refer to the LICENSE file, which should be located alongside the project data and documentation.
Ann Arbor, MI: Inter-university Consortium for Political and Social Research
Mian, Atif, Sufi, Amir, and Trebbi, Francesco. Replication data for: Resolving Debt Overhang: Political Constraints in the Aftermath of Financial Crises. Nashville, TN: American Economic Association [publisher], 2014. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E114294V1
D72 Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
E32 Business Fluctuations; Cycles
E44 Financial Markets and the Macroeconomy
G01 Financial Crises
H63 National Debt; Debt Management; Sovereign Debt
Countries become more politically polarized and fractionalized following
financial crises, reducing the likelihood of major financial reforms precisely when they might have especially large benefits. The evidence from a large sample of countries provides strong support for the hypotheses that following a financial crisis, voters become more ideologically extreme and ruling coalitions become weaker, independently of whether they were initially in power. The evidence that
increased polarization and weaker governments reduce the chances of financial reform and that financial crises lead to legislative gridlock and anemic reform is less clear-cut. The US debt overhang resolution is discussed as an illustration.