The role of risk aversion in a sovereign default model of polarization and political instability
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DOI: 10.1016/j.red.2019.05.003
Abstract: We show that, in models of endogenous sovereign default with symmetric polarization and political turnover, disagreement in the distribution of consumption among distinct political groups or random political turnovers lead to elevated default risk only… read more here.
Keywords: default; risk aversion; polarization; polarization political ... See more keywords
Reply to de Marchi: Modeling polarization of political attitudes
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DOI: 10.1073/pnas.2202863119
Abstract: In his comment on Axelrod et al. (1), de Marchi (2) complains that our model of polarization leaves out a number of mechanisms of opinion change and that consequentially the model cannot be used to… read more here.
Keywords: reply marchi; polarization; political attitudes; marchi modeling ... See more keywords