Income distribution, sovereign debt, and public investment

Cem Karayalçin, Kathryn McCollister

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

We develop a political economy model of sovereign debt that shows that income inequality leads to popular pressures on the government to use foreign debt to finance a redistribution of income at the expense of productive public investment. Recognizing this fact, international lenders impose credit ceilings with the consequence that developing country borrowers invest less and grow slower.

Original languageEnglish
Pages (from-to)351-365
Number of pages15
JournalEconomics and Politics
Volume17
Issue number3
DOIs
StatePublished - Nov 1 2005

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income distribution
public investment
debt
indebtedness
redistribution of income
income
political economy
finance
credit
developing world
developing country
public
Redistribution
Income inequality
Finance
Income
Government
Income distribution
Foreign debt
Developing countries

ASJC Scopus subject areas

  • Geography, Planning and Development

Cite this

Income distribution, sovereign debt, and public investment. / Karayalçin, Cem; McCollister, Kathryn.

In: Economics and Politics, Vol. 17, No. 3, 01.11.2005, p. 351-365.

Research output: Contribution to journalArticle

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