Arce, Fernando; Morgan, Jan; Werquin, Nicolas - 2024
turmoil. We find that left-leaning parties are more prone to default, while right-leaning parties sustain higher debt levels …. Revolts impact default risk through two channels. First, political crises can increase sovereign risk by facilitating … transitions from right-wing to left-wing administrations that culminate in default. Second, the threat of frequent revolts during …