We investigate how political uncertainty around U.S. gubernatorial elections affects local government borrowing costs. Municipal bond yields sharply increase by 7 basis points before an election and reverse afterward. This political risk premium is higher during economic downturns and close...

This paper examines how bilateral political tensions between the U.S. and other countries impact the innovation of US multinational corporations. The results suggest that strained political relations hinder collaboration among international inventors, reducing innovation outputs. Teams including...