We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Sovereign Credit and the Fate of Leaders: Reassessing the 'Democratic Advantage'.
- Authors
DiGiuseppe, Matthew; Shea, Patrick E.
- Abstract
In this article, we contend that the 'democratic advantage' literature (i) exaggerates the potential political backlash from credit downgrades in democracies; and (ii) overlooks the importance of sovereign credit to nondemocratic leaders. We argue that nondemocratic regimes receive a higher marginal political benefit from credit compared to democratic regimes. Consequently, changes in credit prices or credit access affect nondemocratic leaders' tenure more than democratic leaders' tenure. To test this argument, we provide the first statistical examination of the electoral punishment mechanism of the 'democratic advantage.' Our duration analysis shows that credit downgrades increase nondemocratic leaders' vulnerability more than that of their democratic peers. Our research reinforces the growing concerns about the conventional views about regime type, domestic constraints, and leaders' preferences toward sovereign credit and other political processes.
- Subjects
POLITICAL systems; RATINGS &; rankings of public debts; DEMOCRACY -- Economic aspects; POLITICIANS; TERM of office of heads of state; ELECTIONS &; economics; CREDIT ratings; ECONOMICS
- Publication
International Studies Quarterly, 2015, Vol 59, Issue 3, p557
- ISSN
0020-8833
- Publication type
Article
- DOI
10.1111/isqu.12181