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Why do some countries default more often than others ? the role of institutions (English)

This paper examines how a country's weak institutions and polarized government can affect the likelihood of its default on sovereign debt. Using a data set of 90 countries, it shows that strong institutions are associated with fewer sovereign default crises. In addition, when institutions are weak, a more polarized government tends to default more often. To explain these findings, the author develops a model showing the dynamics between the quality...
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Qian,Rong.

Why do some countries default more often than others ? the role of institutions (English). Policy Research working paper ; no. WPS 5993 Washington, DC: World Bank. http://documents.worldbank.org/curated/en/433911468331194979

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